Florida Senate - 2011 CS for SB 812
By the Committee on Regulated Industries; and Senator Diaz de la
Portilla
580-02579A-11 2011812c1
1 A bill to be entitled
2 An act relating to Internet poker; creating the
3 “Internet Poker Consumer Protection and Revenue
4 Generation Act”; providing for intrastate Internet
5 poker to be provided to the public by cardroom
6 operators through a state Internet poker network
7 operated by licensed Internet poker hub operators;
8 creating s. 849.087, F.S.; providing legislative
9 intent; providing definitions; authorizing
10 participation in and operation of intrastate Internet
11 poker; providing for the Division of Pari-mutuel
12 Wagering of the Department of Business and
13 Professional Regulation to administer the act and
14 regulate the operation of a state Internet poker
15 network, Internet poker hub operators, cardroom
16 affiliates, and the playing of intrastate Internet
17 poker; authorizing the division to adopt rules,
18 conduct investigations and monitor operations, review
19 books and accounts and records, suspend or revoke any
20 license or permit for a violation, take testimony,
21 issue summons and subpoenas, monitor and ensure the
22 proper collection of taxes and fees, and monitor and
23 ensure that the playing of Internet poker is conducted
24 fairly and that player information is protected by
25 Internet poker hub operators; requiring Internet poker
26 hub operators to be licensed; providing qualifications
27 and conditions for licensure; providing application
28 requirements; providing for an advance payment to be
29 credited toward taxes; providing initial and renewal
30 license fees; providing for selection of Internet
31 poker hub operators through competitive procurement
32 process; requiring payment of certain costs and refund
33 of amounts collected in excess of the cost; requiring
34 a surety bond; providing for a contract between the
35 state and the poker hub operator; requiring the
36 division to annually determine the need for additional
37 operators; providing for a cardroom affiliate license
38 to be issued to a cardroom operator to provide
39 intrastate Internet poker for play; providing for
40 applications for the affiliate license and renewal
41 thereof; providing conditions for licensure and
42 renewal of licensure as an affiliate; requiring
43 reporting to and approval by the division of a change
44 of ownership of the affiliate licensee; prohibiting
45 certain acts by an affiliate; providing a fee;
46 providing for employee and business occupational
47 licenses; requiring certain employees of and certain
48 companies doing business with a cardroom affiliate or
49 an Internet poker hub operator to hold an appropriate
50 occupational license; prohibiting such operator or
51 affiliate from employing or allowing to be employed
52 such a person or doing business with such a company if
53 that person or company does not hold an occupational
54 license; directing the division to adopt rules
55 regarding Internet poker hub operator, cardroom
56 affiliate, and occupational licenses and renewal of
57 such licenses; providing a fee for occupational
58 license and renewal thereof; providing penalties for
59 failure to pay the fee; exempting from licensure a
60 person holding a valid individual cardroom
61 occupational license; providing grounds for the
62 division to deny an application for or revoke,
63 suspend, or place conditions or restrictions on or
64 refuse to renew such occupational license; requiring
65 fingerprints; providing procedures for processing
66 fingerprints and conducting a criminal history records
67 check and for payment of costs; providing for
68 citations and civil penalties; providing requirements
69 to register and play intrastate Internet poker;
70 providing for an Internet Poker Self-Exclusion Form;
71 requiring the Internet poker hub operator to exclude
72 from play any person who has completed such form;
73 providing for maintenance of the form and distribution
74 to cardroom affiliates and the division; requiring the
75 Internet poker hub operator to display a link to the
76 website offering services related to the prevention of
77 compulsive and addictive gambling; limiting liability;
78 providing requirements for approval of games to be
79 offered to players; providing requirements for all
80 offered games and game results and games not
81 completed; providing requirements to minimize fraud
82 and cheating; prohibiting action for damages against
83 the Internet poker hub operator to prevent fraud or
84 cheating under certain circumstances; providing
85 requirements for player eligibility and registration
86 and player accounts; authorizing the Internet poker
87 hub operator to suspend or revoke player accounts;
88 providing requirements for poker hub operations;
89 requiring the Internet poker hub operator to establish
90 a book of accounts, regularly audit financial records,
91 and make the records available to the division;
92 providing technical system requirements; requiring the
93 Internet poker hub operator to define, document, and
94 implement certain methodologies relating to its
95 systems; requiring the Internet poker hub operator to
96 maintain such documentation for a certain period of
97 time; providing for player participation fees;
98 prohibiting certain relationships and acts by
99 employees of the division and occupational
100 licenseholders and certain relatives; authorizing
101 conduct of proposed and authorized games; prohibiting
102 a person who has not attained a certain age from
103 holding an Internet poker occupational license or
104 engaging in any game conducted; prohibiting offering
105 Internet poker to persons located in the state except
106 in compliance with law; providing that an entity that
107 has accepted any wager on any online gambling activity
108 from a Florida resident since a certain date is not
109 eligible to apply for licensure and participate in
110 intrastate Internet poker in Florida for a specified
111 period of time; prohibiting false statements;
112 prohibiting manipulation of Internet poker play and
113 operations; providing civil and criminal penalties;
114 providing for disposition of fines collected;
115 providing for license fees to be paid by the Internet
116 poker hub operator and cardroom affiliates; providing
117 for disposition and accounting of fees collected;
118 providing for an advance payment by the Internet poker
119 hub operator to be credited toward taxes; providing
120 for the tax rate and procedures for payment; requiring
121 payments to be accompanied by a report showing all
122 intrastate Internet poker activities for the preceding
123 calendar month and containing such other information
124 as prescribed by the division; providing penalties for
125 failure to pay taxes and penalties; providing for use
126 of certain deposits; providing for distribution of
127 moneys received from Internet poker hub operations;
128 providing grounds for the division to deny a license
129 or the renewal thereof or suspend or revoke a license;
130 providing penalties; authorizing the division to adopt
131 rules; providing for administration of the act and
132 regulation of the intrastate Internet poker industry;
133 providing an effective date.
134
135 Be It Enacted by the Legislature of the State of Florida:
136
137 Section 1. This act may be cited as the “Internet Poker
138 Consumer Protection and Revenue Generation Act.”
139 Section 2. Section 849.087, Florida Statutes, is created to
140 read:
141 849.087 Intrastate Internet poker authorized.—
142 (1) LEGISLATIVE INTENT.—It is the intent of the Legislature
143 to create a framework for the state to regulate intrastate
144 Internet poker which can ensure consumer protections and
145 additional revenue to the state by authorizing, implementing,
146 and creating a licensing and regulatory structure and system of
147 intrastate Internet poker to:
148 (a) Provide that intrastate Internet poker is offered for
149 play only in a manner that is lawful under the federal Unlawful
150 Internet Gambling Enforcement Act of 2006.
151 (b) Provide a new source of revenue that will generate
152 additional positive economic benefits to the state through the
153 authorization of lawful and regulated intrastate Internet poker
154 in Florida instead of flowing offshore to unregulated foreign
155 operators and markets.
156 (c) Create a contractual relationship with one or more
157 Internet poker hub operators having the technical expertise to
158 ensure that wagering authorized by this section is offered only
159 to registered players who are at least 18 years of age and
160 physically present within the borders of this state at the time
161 of play.
162 (d) Provide for a competitive procurement process to select
163 one or more Internet poker hub operators that are qualified to
164 be licensed by the state and meet all statutory, regulatory, and
165 contractual requirements of the state while protecting
166 registered poker players.
167 (e) Provide for a licensed cardroom operator to become a
168 licensed provider of intrastate Internet poker through Internet
169 poker hub operators.
170 (f) Ensure that the state is able to collect all taxes and
171 fees from the play of intrastate Internet poker.
172 (g) Create a system to protect each registered poker
173 player’s private information and prevent fraud and identity
174 theft and ensure that the player’s financial transactions are
175 processed in a secure and transparent fashion.
176 (h) Ensure that the regulatory agency has unlimited access
177 to the premises and records of the Internet poker hub operators
178 and cardroom affiliates to ensure strict compliance with its
179 regulations concerning credit authorization, account access, and
180 other security provisions.
181 (i) Require the Internet poker hub operators to provide
182 accessible customer service to registered poker players.
183 (j) Require the Internet poker hub operator’s Internet site
184 to contain information relating to problem gambling, including a
185 telephone number that an individual may call to seek information
186 and assistance for a potential gambling addiction.
187 (2) DEFINITIONS.—Unless otherwise clearly required by the
188 context, as used in this section:
189 (a) “Authorized game” means a game or series of games of
190 poker, which may include tournaments, which are played in a
191 nonbanking manner on a state Internet poker network.
192 (b) “Cardroom affiliate” means a licensed cardroom operator
193 as defined in s. 849.086 who maintains an Internet site as a
194 portal into a state Internet poker network.
195 (c) “Convicted” means having been found guilty, regardless
196 of adjudication, as a result of a jury verdict, nonjury trial,
197 or entry of a plea of guilty or nolo contendere.
198 (d) “Department” means the Department of Business and
199 Professional Regulation.
200 (e) “Division” means the Division of Pari-mutuel Wagering
201 of the department.
202 (f) “Gross receipts” means the total amount of money
203 received by an Internet poker hub operator from registered
204 players for participation in authorized games.
205 (g) “Internet poker hub operator” or “poker hub operator”
206 means a computer system operator that is licensed by the state
207 and contracts with the state to operate a state Internet poker
208 network.
209 (h) “Intrastate Internet poker” means authorized games of
210 poker played over the Internet by registered players who are
211 physically present within the borders of this state at the time
212 of play.
213 (i) “Liquidity” means the total number of registered
214 players available in a state Internet poker network.
215 (j) “Nonbanking game” means an authorized game in which an
216 Internet poker hub operator or cardroom affiliate is not a
217 participant and has no financial stake in the outcome of the
218 authorized game.
219 (k) “Player incentives” means any bonuses, rewards, prizes,
220 or other types of promotional items provided to a registered
221 player by an Internet poker hub operator or cardroom affiliate
222 as an incentive to begin or continue playing on a state Internet
223 poker network.
224 (l) “Rake” means a set fee or percentage of the pot
225 assessed by an Internet poker hub operator for providing the
226 Internet poker services to registered players for the right to
227 participate in an authorized game conducted by the poker hub
228 operator.
229 (m) “Registered player” means a person who is registered
230 with a poker hub operator under this section to participate in
231 an authorized game conducted on a state Internet poker network.
232 (n) “State Internet poker network” means a computer system
233 operated by one or more Internet poker hub operators which
234 authorizes the playing of and wagering on intrastate Internet
235 poker by registered players through the website portals of
236 cardroom affiliates.
237 (o) “Tournament fee” means a set fee assessed to registered
238 players by an Internet poker hub operator for providing the
239 Internet poker tournament services.
240 (3) INTRASTATE INTERNET POKER AUTHORIZED.—
241 (a) Under the Unlawful Internet Gambling Enforcement Act of
242 2006, a state is not precluded from regulating and conducting
243 intrastate Internet poker as long as all players and the online
244 wagering activities are located within the state.
245 (b) Notwithstanding any other provision of law, a person in
246 Florida may participate as a registered player in an authorized
247 game or tournament provided on a state Internet poker network by
248 a licensed cardroom affiliate or may operate a state Internet
249 poker network as a licensed Internet poker hub operator if such
250 game and poker operations are conducted strictly in accordance
251 with the provisions of this section and federal law.
252 (4) AUTHORITY OF DIVISION.—The division shall administer
253 this section and regulate the operation of a state Internet
254 poker network, the Internet poker hub operators, the cardroom
255 affiliates, and the play of intrastate Internet poker under this
256 section and the rules adopted pursuant to this section, and is
257 authorized to:
258 (a) Adopt rules related to Internet poker, including, but
259 not limited to, rules governing the issuance of operator and
260 individual occupational licenses to Internet poker hub
261 operators, cardroom affiliates, and their employees; operation
262 of a state Internet poker network and technical system
263 requirements; security of the financial information of
264 registered players and registered player accounts; bonuses,
265 awards, promotions, and other incentives to registered players;
266 recordkeeping and reporting requirements; the distribution of
267 Internet poker income; and the imposition and collection of all
268 fees and taxes imposed by this section.
269 (b) Conduct investigations and monitor operation of a state
270 Internet poker network and the playing of authorized games on a
271 network.
272 (c) Review the books, accounts, and records of any current
273 or former Internet poker hub operator or cardroom affiliate.
274 (d) Suspend or revoke any license, after a hearing, for any
275 violation of this section or the rules adopted pursuant to this
276 section.
277 (e) Take testimony, issue summons and subpoenas for any
278 witness, and issue subpoenas duces tecum in connection with any
279 matter within its jurisdiction.
280 (f) Monitor and ensure proper collection of taxes and fees
281 imposed by this section. The division shall monitor, audit, and
282 verify the cash flow and accounting of a state Internet poker
283 network revenue for any given operating day.
284 (g) Monitor and ensure that the playing of Internet poker
285 is conducted fairly and that all personal and financial
286 information provided by registered players is protected by the
287 Internet poker hub operators.
288 (5) INTERNET POKER HUB OPERATOR LICENSE REQUIRED;
289 APPLICATION.—A person may not operate as an Internet poker hub
290 operator in this state unless the person holds a valid Internet
291 poker hub operator license issued under this section.
292 (a) Only a person holding a valid Internet poker hub
293 operator license issued by the division may provide intrastate
294 Internet poker for play to registered players.
295 (b) An Internet poker hub operator must be an entity
296 authorized to conduct business in this state.
297 (c) A person seeking a license or renewal of a license to
298 operate as an Internet poker hub operator shall make application
299 on forms prescribed by the division. Applications for Internet
300 poker hub operator licenses shall contain all of the information
301 the division, by rule, determines is required to ensure
302 eligibility under this section.
303 (d) As a condition of licensure and to maintain continued
304 authority to conduct intrastate Internet poker, an Internet
305 poker hub operator licensee must provide the documentation
306 required under this section on a timely basis to the division
307 and the documentation must be appropriate, current, and
308 accurate. A change in ownership or interest of an Internet poker
309 hub operator licensee of 5 percent or more of the stock or other
310 evidence of ownership or equity in an Internet poker hub
311 operator licensee or any parent corporation or other business
312 entity that in any way owns or controls an Internet poker hub
313 operator licensee must be approved by the division before the
314 change, unless the owner is an existing holder of the license
315 who was previously approved by the division. A change in
316 ownership or interest of less than 5 percent which results in a
317 cumulative ownership or interest of 5 percent or more must be
318 approved by the division before the change, unless the owner is
319 an existing holder of the license who was previously approved by
320 the division. The division may then conduct an investigation to
321 ensure that the license is properly updated to show the change
322 in ownership or interest. Reporting is not required under this
323 paragraph if the person is holding 5 percent or less of the
324 equity or securities of a corporate owner of an Internet poker
325 hub operator licensee that has its securities registered
326 pursuant to s. 12 of the Securities Exchange Act of 1934, 15
327 U.S.C. ss. 78a-78kk, and if the corporation or entity files with
328 the United States Securities and Exchange Commission the reports
329 required by s. 13 of that act or if the securities of the
330 corporation or entity are regularly traded on an established
331 securities market in the United States.
332 (e) Any applicant and each licensee shall pay all fees as
333 required in subsections (24) and (25).
334 (6) SELECTION OF AN INTERNET POKER HUB OPERATOR BY
335 COMPETITIVE PROCUREMENT PROCESS; EVALUATION.—
336 (a) The division shall, subject to a competitive
337 procurement process, select no more than three Internet poker
338 hub operator applicants that meet the licensure and technical
339 requirements and expertise to provide services for lawful
340 intrastate Internet poker games in Florida. The applicants must
341 demonstrate the ability to ensure that intrastate Internet poker
342 is offered only to registered players who are at least 18 years
343 of age and who are physically present within the borders of this
344 state at the time of play.
345 (b) After each year of operation of intrastate Internet
346 poker, the division shall review and evaluate the current level
347 of liquidity in the state Internet poker network to determine if
348 there is a need to license additional Internet poker hub
349 operators, if the maximum number of Internet poker hub operators
350 has not already been authorized. If the division finds there is
351 sufficient evidence to support licensing additional Internet
352 poker hub operators, then the division may select additional
353 Internet poker hub operators pursuant to this subsection and the
354 qualifications specified in subsection (7). Notwithstanding the
355 power to license additional Internet poker hub operators under
356 this paragraph, only three Internet poker hub operators may be
357 licensed at any one time in the state.
358 (7) QUALIFICATIONS FOR AN INTERNET POKER HUB OPERATOR.—For
359 the purposes of this section, the division shall consider all of
360 the following as minimum qualifications to determine whether an
361 Internet poker hub operator applicant or any subcontractor
362 included in the hub operator applicant’s state application is
363 legally, technically, and financially qualified to become the
364 state’s Internet poker hub operator:
365 (a) The applicant is an entity authorized to conduct
366 business in this state.
367 (b) The applicant has not accepted any wager of money or
368 other consideration on any online gambling activity, including
369 poker, from any Florida resident since October 13, 2006.
370 However, this paragraph does not disqualify an applicant or
371 subcontractor who accepts online pari-mutuel wagers from any
372 Florida resident through a legal online pari-mutuel wagering
373 entity authorized in another state.
374 (c) The applicant’s executives and key employees meet the
375 requirements to obtain intrastate Internet poker occupational
376 licenses from the division, as set forth in subsection (12).
377 (d) The applicant has existing and established experience
378 with Internet gaming, or is licensed to conduct Internet gaming
379 activities, in one or more jurisdictions anywhere in the world
380 where Internet gaming is legal and regulated.
381 (e) The applicant and all entities with an ownership
382 interest in the applicant have demonstrated compliance with all
383 federal and state laws in the jurisdictions in which they
384 provide services.
385 (f) The applicant has provided all necessary documentation
386 and information relating to all proposed subcontractors of the
387 applicant.
388 (g) The applicant has provided a description of how it will
389 facilitate compliance with all of the standards set forth in
390 this section, including, but not limited to, those for:
391 1. Registered player processes and requirements relating to
392 intrastate play, age verification, and exclusion of problem
393 gamblers.
394 2. Network system requirements, including, but not limited
395 to, connectivity, hardware, software, anti-fraud systems, virus
396 prevention, data protection, access controls, firewalls,
397 disaster recovery, and redundancy.
398 3. Gaming systems, including, but not limited to, hardware
399 and software that ensures that: games are legal, games are
400 independent and fair, game and betting rules are available to
401 all registered players, and all data used for the conduct of
402 each game are randomly generated and unpredictable.
403 4. Ongoing auditing by the division and accounting systems,
404 including, but not limited to, those for registered player
405 accounts, participation fees, distribution of funds to
406 registered players, and distribution of revenue to the state.
407 (h) The applicant has provided all other documentation or
408 information that the division, by rule, has determined is
409 required to ensure that the applicant is legally, technically,
410 and financially qualified to enter into a contract to become the
411 state’s Internet poker hub operator.
412 (8) SUBMISSION OF THE APPLICATION FOR AN INTERNET POKER HUB
413 OPERATOR.—In addition to demonstrating that the applicant is
414 legally, technically, and financially qualified to become an
415 Internet poker hub operator in the state, the applicant must
416 describe how it will fulfill the contractual role envisaged by
417 this section. The applicant shall provide all of the following:
418 (a) All necessary documentation and information relating to
419 the applicant and its direct and indirect owners, including, but
420 not limited to:
421 1. Documentation that the entity is authorized to conduct
422 business in this state and other founding documents.
423 2. Current and historical audited financial and accounting
424 records.
425 3. Any and all documents relating to legal and regulatory
426 proceedings in this state and other jurisdictions involving the
427 applicant.
428 4. Any and all documents relating to the applicant’s
429 business history, including all state and federal tax filings.
430 5. Any and all documents relating to the nature and sources
431 of the applicant’s financing.
432 6. Any and all documentation that demonstrates that the
433 applicant is financially qualified to perform the obligations of
434 an Internet poker hub operator as described in this section.
435 7. Any other documentation or information that the
436 division, by rule, determines is required to ensure eligibility.
437 (b) All necessary documentation and information relating to
438 any of the subcontractors of the Internet poker hub operator
439 applicant, including, but not limited to:
440 1. A description of the services to be provided by each
441 subcontractor.
442 2. Information for each subcontractor as set forth in this
443 section.
444 3. Any other documentation or information that the
445 division, by rule, determines is required to ensure eligibility.
446 (c) A description as to how the applicant will facilitate
447 compliance with all of the standards set forth in this section,
448 including, but not limited to, those for:
449 1. Registered player requirements relating to:
450 a. Intrastate play.
451 b. Age verification.
452 c. Exclusion of problem gamblers.
453 2. Network system requirements, including, but not limited
454 to:
455 a. Connectivity.
456 b. Hardware.
457 c. Software.
458 d. Anti-fraud systems.
459 e. Virus prevention.
460 f. Data protection.
461 g. Access controls.
462 h. Firewalls.
463 i. Disaster recovery.
464 j. Redundancy.
465 3. Gaming systems, including, but not limited to, hardware
466 and software that ensures that:
467 a. Games are legal.
468 b. Games are independent and fair.
469 c. Game and betting rules are available to all registered
470 players.
471 d. All data used for the conduct of each game are randomly
472 generated and unpredictable.
473 4. Accounting systems, including, but not limited to, those
474 for:
475 a. Registered player accounts.
476 b. Participation fees.
477 c. Transparency and reporting to the division.
478 d. Distribution of revenue to the state, funds pursuant to
479 contract, and funds to registered players.
480 e. Ongoing auditing.
481 (d) A description of the games and services the applicant
482 proposes to offer to registered players.
483 (e) A description by the applicant of how it will ensure
484 that registered players are at least 18 years of age or older
485 and facilitate registered player protections and resolution of
486 player disputes.
487 (f) Upon submission of the initial application and
488 proposal, the applicant shall pay all fees required in
489 subsections (23) and (24).
490 (9) ANNUAL BOND REQUIRED.—The holder of a license to be an
491 Internet poker hub operator in the state shall be financially
492 and otherwise responsible for the operation of a state Internet
493 poker network and for the conduct of any employee involved in
494 the operation of the online poker network. Before the issuance
495 of an Internet poker hub operator license, each qualified
496 applicant for such a license must provide evidence of a surety
497 bond in the amount of $1 million, payable to the state, for each
498 year that the licensee is licensed to be an Internet poker hub
499 operator in the state. The bond shall be issued by a surety or
500 sureties authorized to do business in the state and approved by
501 the division and the Chief Financial Officer in his or her
502 capacity as treasurer of the division. The bond shall guarantee
503 that an Internet poker hub operator fulfills all financial
504 requirements of the contract. Such bond shall be kept in full
505 force and effect by an Internet poker hub operator during the
506 term of the license.
507 (10) CONTRACTUAL RELATIONSHIP; RIGHT TO TERMINATE
508 CONTRACT.—An Internet poker hub operator shall comply with the
509 terms of its contract with the state and this section.
510 (a) The accepted proposal agreed to by the division and an
511 Internet poker hub operator shall constitute the contract
512 between the state and the Internet poker hub operator.
513 (b) The contract between the state and an Internet poker
514 hub operator is for a 5-year period and may be renewed for a
515 period equal to the original contract, if agreed to by both
516 parties.
517 (c) The contract between the state and an Internet poker
518 hub operator may be amended by mutual written agreement of the
519 division and the Internet poker hub operator.
520 (d) If this section is amended in such a way that affects
521 the play of intrastate Internet poker or affects the operation
522 of intrasate Internet poker by the licensed Internet poker hub
523 operators contrary to the existing contract with the state, an
524 Internet poker hub operator may declare the contract null and
525 void within 90 days after the effective date of the amendment
526 and must provide at least 60 days prior written notice to the
527 division of such intent. Failure to provide notice of such
528 intent to declare the contract null and void within 60 days of
529 the effective date of any amendment to this section constitutes
530 an agreement to be bound by the amendments adopted after the
531 terms of the contract are established.
532 (e) In the event of commercial infeasibility due to a
533 change in federal law rendering the provision of intrastate
534 poker services illegal, an Internet poker hub operator or the
535 division may abandon the contract after providing the other
536 party with at least 90 days’ written notice of its intent to end
537 the contract and a statement explaining its interpretation that
538 continuing to provide services under the contract is
539 commercially infeasible.
540 (f) If a dispute arises between the parties to the
541 contract, either the division or the Internet poker hub operator
542 may go through an administrative law or circuit court for an
543 initial interpretation of the contract and the rights and
544 responsibilities in the contract.
545 (11) CARDROOM AFFILIATE LICENSE REQUIRED; APPLICATION;
546 FEES.—A cardroom affiliate license may only be issued or renewed
547 to a cardroom operator who is licensed under s. 849.086,
548 actively operates a cardroom with a minimum of 10 licensed
549 tables, and complies with all the requirements of s. 849.086 and
550 the rules adopted pursuant to that section.
551 (a) Only those persons holding a valid cardroom affiliate
552 license issued by the division may provide intrastate Internet
553 poker for play to registered players through its website.
554 (b) Prior to providing intrastate Internet poker for play
555 to registered players, a cardroom affiliate licensee must have
556 entered into a contractual relationship with a licensed Internet
557 poker hub operator to offer the play of Internet poker. A copy
558 of the contract must be on file with the division.
559 (c) After the initial cardroom affiliate license is
560 granted, the annual application for the renewal of that license
561 shall be made in conjunction with the applicant’s annual
562 application for its cardroom and pari-mutuel licenses under s.
563 849.086 and chapter 550, respectively.
564 (d) A person seeking a license or renewal of a license to
565 operate as a cardroom affiliate shall make the application on
566 forms prescribed by the division. An application for a cardroom
567 affiliate license shall contain all of the information the
568 division, by rule, determines is required to ensure eligibility.
569 (e) As a condition of licensure and to maintain continued
570 authority for the conduct of intrastate Internet poker, the
571 cardroom affiliate licensee must provide the documentation
572 required under this section on a timely basis to the division
573 and the documentation must be appropriate, current, and
574 accurate.
575 (f) As a condition of eligibility for license renewal, a
576 cardroom affiliate must have, as either an individual or as part
577 of a coalition as allowed in paragraph (26)(d), an active and
578 operating portal, must have a current contract on file with the
579 division, and must have contributed at least 1 percent of the
580 total revenue generated from the play of intrastate Internet
581 poker through the Internet poker hub the cardroom affiliate has
582 contracted with from the previous state fiscal year, as
583 determined by the division.
584 (g) The annual cardroom affiliate license fee shall be
585 $1,000 as referenced in paragraph (23)(c).
586 (h) The division shall adopt rules regarding cardroom
587 affiliate licenses and renewals.
588 (12) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE REQUIRED;
589 APPLICATION; FEES.—
590 (a) A person employed by or otherwise working for an
591 Internet poker hub operator or a cardroom affiliate in any
592 capacity related to and while conducting intrastate Internet
593 poker operations must hold a valid occupational license issued
594 by the division.
595 (b) An Internet poker hub operator or a cardroom affiliate
596 may not employ or allow to be employed any person in any
597 capacity related to the operation of intrastate Internet poker
598 unless the person holds a valid occupational license.
599 (c) An Internet poker hub operator or cardroom affiliate
600 may not contract with, or otherwise do business with, a business
601 required to hold a valid intrastate Internet poker business
602 occupational license, unless the business holds such a valid
603 license.
604 (d) A proprietorship, partnership, corporation,
605 subcontractor, or other entity must obtain a valid intrastate
606 Internet poker business occupational license issued by the
607 division to partner with, contract with, be associated with, or
608 participate in the conduct of intrastate Internet poker
609 operations with an Internet poker hub operator or a cardroom
610 affiliate.
611 (e) The division shall establish, by rule, a schedule for
612 the annual renewal of Internet poker hub operator and cardroom
613 affiliate occupational licenses. Intrastate Internet poker
614 occupational licenses are not transferable.
615 (f) A person seeking an intrastate Internet poker
616 occupational license, or renewal of such a license, shall make
617 the application on forms prescribed by the division and include
618 payment of the appropriate application fee. An application for
619 an intrastate Internet poker occupational license shall contain
620 all of the information the division, by rule, determines is
621 required to ensure eligibility under this section.
622 (g) The division shall adopt rules regarding intrastate
623 Internet poker occupational licenses and renewals.
624 (h) An intrastate Internet poker occupational license is
625 valid for the same term as a pari-mutuel occupational license
626 issued under s. 550.105(1).
627 (i) Pursuant to rules adopted by the division, any person
628 may apply for and, if qualified, be issued an intrastate
629 Internet poker occupational license valid for a period of 3
630 years upon payment of the full occupational license fee for each
631 of the 3 years for which the license is issued. The intrastate
632 Internet poker occupational license is valid during its
633 specified term at any Internet poker hub operator or a cardroom
634 affiliate where intrastate Internet poker is authorized to be
635 conducted.
636 (j) The intrastate Internet poker occupational license fee
637 for initial application and annual renewal shall be determined
638 by rule of the division but may not exceed $50 for an
639 occupational license for an employee of an Internet poker hub
640 operator or a cardroom affiliate licensee or $1,000 for a
641 business occupational license for nonemployees of the licensee
642 providing goods or services to an Internet poker hub operator or
643 a cardroom affiliate occupational licensee. Failure to pay the
644 required fee constitutes grounds for disciplinary action by the
645 division against an Internet poker hub operator or a cardroom
646 affiliate occupational licensee.
647 (k) A person holding a valid individual cardroom
648 occupational license issued by the division under s. 849.086(6)
649 is not required to obtain an individual employee occupational
650 license under this subsection.
651 (13) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE DENIAL,
652 REVOCATION, SUSPENSION, LIMITATION, OR NONRENEWAL.—The division
653 may:
654 (a) Deny an application for, or revoke, suspend, or place
655 conditions or restrictions on, a license of a person or entity
656 that has been refused a license by any other state gaming
657 commission, governmental department, agency, or other authority
658 exercising regulatory jurisdiction over the gaming of another
659 state or jurisdiction.
660 (b) Deny an application for, or suspend or place conditions
661 or restrictions on, a license of any person or entity that is
662 under suspension or has unpaid fines in another state or
663 jurisdiction.
664 (c) Deny, suspend, revoke, or refuse to renew any Internet
665 poker hub operator or cardroom affiliate occupational license if
666 the applicant for the license or the licensee has violated this
667 section or the rules of the division governing the conduct of
668 persons connected with the play of intrastate Internet poker.
669 (d) Deny, suspend, revoke, or refuse to renew any Internet
670 poker hub operator or cardroom affiliate occupational license if
671 the applicant for the license or the licensee has been convicted
672 in this state, in any other state, or under the laws of the
673 United States of a capital felony, a felony, or an offense in
674 any other state that would be a felony under the laws of this
675 state involving arson; trafficking in, conspiracy to traffic in,
676 smuggling, importing, conspiracy to smuggle or import, or
677 delivery, sale, or distribution of a controlled substance;
678 racketeering; or a crime involving a lack of good moral
679 character, or has had a gaming license revoked by this state or
680 any other jurisdiction for any gaming-related offense.
681 (e) Deny, revoke, or refuse to renew any Internet poker hub
682 operator or cardroom affiliate occupational license if the
683 applicant for the license or the licensee has been convicted of
684 a felony or misdemeanor in this state, in any other state, or
685 under the laws of the United States if such felony or
686 misdemeanor is related to gambling or bookmaking as described in
687 s. 849.25.
688 (14) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE;
689 FINGERPRINTS; FEES; CITATIONS.—
690 (a) A person employed by or working with an Internet poker
691 hub operator or a cardroom affiliate must submit fingerprints
692 for a criminal history record check and may not have been
693 convicted of any disqualifying criminal offense specified in
694 subsection (7). Division employees and law enforcement officers
695 assigned by their employing agencies to work within the premises
696 as part of their official duties are excluded from the criminal
697 history record check requirements under this subsection.
698 (b) Fingerprints for all intrastate Internet poker
699 occupational license applications shall be taken in a manner
700 approved by the division upon initial application, or as
701 required thereafter by rule of the division, and shall be
702 submitted electronically to the Department of Law Enforcement
703 for state processing. The Department of Law Enforcement shall
704 forward the fingerprints to the Federal Bureau of Investigation
705 for national processing. The results of the criminal history
706 record check shall be returned to the division for purposes of
707 screening. The division requirements under this subsection shall
708 be instituted in consultation with the Department of Law
709 Enforcement.
710 (c) The cost of processing fingerprints and conducting a
711 criminal history record check for an intrastate Internet poker
712 occupational license shall be borne by the person being checked.
713 The Department of Law Enforcement may invoice the division for
714 the fingerprints submitted each month.
715 (d) All fingerprints submitted to the Department of Law
716 Enforcement and required by this section shall be retained by
717 the Department of Law Enforcement and entered into the statewide
718 automated fingerprint identification system as authorized by s.
719 943.05(2)(b) and shall be available for all purposes and uses
720 authorized for arrest fingerprint cards entered into the
721 statewide automated fingerprint identification system under s.
722 943.051.
723 (e) The Department of Law Enforcement shall search all
724 arrest fingerprints received under s. 943.051 against the
725 fingerprints retained in the statewide automated fingerprint
726 identification system. Any arrest record that is identified with
727 the retained fingerprints of a person subject to the criminal
728 history screening requirements of this section shall be reported
729 to the division. Each licensed facility shall pay a fee to the
730 division for the cost of retention of the fingerprints and the
731 ongoing searches under this paragraph. The division shall
732 forward the payment to the Department of Law Enforcement. The
733 amount of the fee to be imposed for performing these searches
734 and the procedures for the retention of licensee fingerprints
735 shall be as established by rule of the Department of Law
736 Enforcement. The division shall inform the Department of Law
737 Enforcement of any change in the license status of licensees
738 whose fingerprints are retained under paragraph (d).
739 (f) The division shall request the Department of Law
740 Enforcement to forward the fingerprints to the Federal Bureau of
741 Investigation for a national criminal history records check
742 every 3 years following issuance of a license. If the
743 fingerprints of a person who is licensed have not been retained
744 by the Department of Law Enforcement, the person must file a
745 complete set of fingerprints as provided for in paragraph (a).
746 The division shall collect the fees for the cost of the national
747 criminal history record check under this paragraph and shall
748 forward the payment to the Department of Law Enforcement. The
749 cost of processing fingerprints and conducting a criminal
750 history record check under this paragraph for an intrastate
751 Internet poker occupational license shall be borne by the person
752 being checked. The Department of Law Enforcement may invoice the
753 division for the fingerprints submitted each month. Under
754 penalty of perjury, each person who is licensed or who is
755 fingerprinted as required by this subsection must agree to
756 inform the division within 48 hours if he or she is convicted of
757 or has entered a plea of guilty or nolo contendere to any
758 disqualifying offense, regardless of adjudication.
759 (g) All moneys collected under this subsection shall be
760 deposited into the Pari-mutuel Wagering Trust Fund.
761 (h) The division may deny, revoke, or suspend any
762 occupational license if the applicant or holder of the license
763 accumulates unpaid obligations, defaults in obligations, or
764 issues drafts or checks that are dishonored or for which payment
765 is refused without reasonable cause.
766 (i) The division may fine or suspend, revoke, or place
767 conditions upon the license of any licensee who provides false
768 information under oath regarding an application for a license or
769 an investigation by the division.
770 (j) The division may impose a civil fine of up to $10,000
771 for each violation of this section or the rules of the division
772 in addition to or in lieu of any other penalty provided for in
773 this subsection. The division may adopt a penalty schedule for
774 violations of this section or any rule adopted pursuant to this
775 section for which it would impose a fine in lieu of a suspension
776 and adopt rules allowing for the issuance of citations,
777 including procedures to address such citations, to persons who
778 violate such rules. In addition to any other penalty provided by
779 law, the division may exclude from all licensed pari-mutuel,
780 cardroom, and slot machine facilities in this state, for a
781 period not to exceed the period of suspension, revocation, or
782 ineligibility, any person whose occupational license application
783 has been declared ineligible to hold an occupational license or
784 whose occupational license has been suspended or revoked by the
785 division.
786 (15) INTRASTATE INTERNET POKER; AUTHORIZED GAMES.—
787 (a) In order to offer a specific game of poker for play, an
788 Internet poker hub operator shall provide the division with:
789 1. A description of any game of poker and the betting rules
790 it proposes to offer to registered players; and
791 2. Documentation relating to development and testing of the
792 game’s software.
793 (b) Upon submission of the information required in
794 paragraph (a), an Internet poker hub operator may begin offering
795 the game. If the division does not object to the proposed game
796 of poker within 30 days after receipt of the submission, the
797 game will be considered authorized and the Internet poker hub
798 operator submitting the proposal may continue to offer the game
799 to registered players.
800 (c) Games and betting events shall be operated strictly in
801 accordance with the specified game and betting rules.
802 (d) An Internet poker hub operator shall ensure that the
803 authorized games of poker are fair. For each proposed or
804 authorized game offered for play, the gaming system shall
805 display the following information:
806 1. The name of the game.
807 2. Any restrictions on play.
808 3. The rules of the game.
809 4. All instructions on how to play.
810 5. The unit and total bets permitted.
811 6. The registered player’s current account balance, which
812 shall be updated in real time.
813 7. Any other information that an Internet poker hub
814 operator determines is necessary for the registered player to
815 have in real time to compete fairly in the proposed or
816 authorized game.
817 (e) All proposed and authorized game results shall be
818 conducted in such a fashion that:
819 1. Data used to create results shall be unpredictable such
820 that it is infeasible to predict the next occurrence in a game,
821 given complete knowledge of the algorithm or hardware generating
822 the sequence, and all previously generated numbers.
823 2. The game or any game event outcome shall not be affected
824 by the effective bandwidth, link utilization, bit error rate, or
825 other characteristic of the communications channel between the
826 gaming system and the playing device used by the player.
827 (f) An Internet poker hub operator shall deploy controls
828 and technology to ensure the ability to minimize fraud or
829 cheating through collusion, such as external exchange of
830 information between different players, or any other means.
831 1. If an Internet poker hub operator becomes aware that
832 fraud or cheating is taking place or has taken place, it shall
833 immediately take steps to stop such activities and inform the
834 division of all relevant facts.
835 2. An Internet poker hub operator shall immediately inform
836 the division of any complaints of fraud or collusion and shall
837 investigate whether the complaints are true and shall
838 expeditiously act to prevent further fraud or collusion from
839 taking place on the Internet poker hub. An Internet poker hub
840 operator shall report the results of the investigation in
841 writing to the division within 24 hours after the complaint and
842 shall continue to report every 24 hours until its investigation
843 is concluded. This paragraph does not prevent the division from
844 conducting an independent investigation or initiating an
845 administrative action to protect registered players from fraud
846 and collusion on the Internet poker hub site and does not
847 prohibit a registered player, the Internet poker hub operator, a
848 cardroom affiliate, or the division from reporting suspected
849 criminal activities to law enforcement officials.
850 3. A registered player may not bring an action for damages
851 against an Internet poker hub operator for preventing fraud or
852 cheating or attempting to prevent fraud or cheating if the
853 Internet poker hub operator can demonstrate that it acted to
854 prevent such actions as soon as it became aware of them.
855 (g) If the gaming server or software does not allow a game
856 to be completed, the hand shall be voided and all funds relating
857 to the incomplete hand shall be returned to the registered
858 player’s account.
859 (16) REGISTERED PLAYERS; ELIGIBILITY.—
860 (a) All registered players must be located within this
861 state at the time of play of intrastate Internet poker.
862 (b) A person who has not attained 18 years of age may not
863 be a registered player or play intrastate Internet poker.
864 (c) All Internet poker hub operators and cardroom
865 affiliates shall exclude from play any person who has submitted
866 a completed Internet Poker Self-Exclusion Form.
867 1. All Internet poker hub operators and cardroom affiliates
868 shall have an Internet Poker Self-Exclusion Form available
869 online and accessible on the Internet page that is displayed
870 when:
871 a. A person opens the Internet page to register as a
872 registered player; or
873 b. A registered player accesses the first page of the
874 Internet page prior to playing.
875 2. Upon receipt of a completed Internet Poker Self
876 Exclusion Form, an Internet poker hub operator or cardroom
877 affiliate shall immediately provide a copy of the completed form
878 to each Internet poker hub operator, each cardroom affiliate,
879 and the division. The division shall ensure that all other
880 cardroom affiliates exclude the person from the play of
881 intrastate Internet poker.
882 3. Each Internet poker hub operator and cardroom affiliate
883 shall retain the original form to identify persons who request
884 to be excluded from play.
885 4. Each Internet poker hub operator and cardroom affiliate
886 shall prominently display a link to the website of a responsible
887 gaming organization that is under contract with the division
888 pursuant to s. 551.118(2) for services related to the prevention
889 of compulsive and addictive gambling.
890 5. A person may not bring any action against an Internet
891 poker hub operator or a cardroom affiliate for negligence or any
892 other claim if a person who has filled out an Internet Poker
893 Self-Exclusion Form gains access and plays despite the request
894 to be excluded.
895 (17) REGISTERED PLAYER ACCOUNTS.—
896 (a) An Internet poker hub operator shall register players
897 and establish registered player accounts prior to play and shall
898 ensure that the player’s personally identifiable information is
899 accessible to the player and regulators but is otherwise secure.
900 (b) A person may not participate in any game on a state
901 Internet poker network unless the person is registered as a
902 player and holds an account.
903 (c) Accounts may be established in person or by mail,
904 telephone, or any electronic means.
905 (d) To register and establish an account, a person must
906 provide the following registration information:
907 1. First name and surname.
908 2. Principal residence address.
909 3. Telephone number.
910 4. Social security number.
911 5. Legal identification or certification to prove that the
912 person is at least 18 years of age.
913 6. Valid email address.
914 7. The source of funds to be used to establish the account
915 after the registration process is complete.
916 (e) Prior to completing the registration process, an
917 Internet poker hub operator shall explain to the person in a
918 conspicuous fashion the privacy policies of the Internet poker
919 hub, and the person must assent to the following policies:
920 1. Personal identifying information will not be shared with
921 any nongovernment third parties except for licensed
922 subcontractors of an Internet poker hub operator for the sole
923 purpose of permitting registered players to participate in games
924 on the Internet poker hub or upon receipt of a court order to
925 subpoena such information from the Internet poker hub.
926 2. All personally identifiable information about registered
927 players will be shared with the division, the Department of Law
928 Enforcement, and any other governmental agency that receives a
929 court order to subpoena such information.
930 (f) An Internet poker hub operator shall also require that
931 a person agree to the terms of a use agreement applying to
932 registered players.
933 (g) An Internet poker hub operator shall provide a
934 registered player with the means to update the information
935 provided in paragraph (d).
936 (h) An Internet poker hub operator may revoke the accounts
937 of a registered player for the following reasons:
938 1. The registered player provided false information in the
939 registration process;
940 2. The registered player has not updated registration
941 information to keep it current; or
942 3. The registered player has violated an Internet poker hub
943 operator’s terms of use agreement.
944 (i) An Internet poker hub operator may suspend or revoke
945 the account of a registered player if the operator suspects the
946 registered player has participated in illegal activity on a
947 state Internet poker network.
948 (j) An Internet poker hub operator shall establish and
949 maintain an account for each registered player. An Internet
950 poker hub operator shall:
951 1. Provide a means for a registered player to put funds
952 into an account; however, a registered player may not increase
953 the amount in an account after a game has started and before its
954 completion.
955 2. Maintain records on the balance of each registered
956 player’s account.
957 3. Prohibit a registered player from placing a wager unless
958 the player’s account has sufficient funds to cover the amount of
959 the wager.
960 4. Not provide credit to a registered player’s account or
961 act as an agent for a credit provider to facilitate the
962 provision of funds.
963 5. Provide a means for a registered player to transfer
964 money out of the player’s account.
965 (k) An Internet poker hub operator shall put in place other
966 systems that provide registered players with the ability to
967 control aspects of their play. Upon registration and at each
968 time when a registered player logs on to a state Internet poker
969 network, an Internet poker hub operator shall permit the
970 registered player to adjust the player’s play settings to:
971 1. Set a limit on the deposits that can be made per day;
972 2. Set a limit on the amount that can be wagered within a
973 specified period of time;
974 3. Set a limit on the losses that may incur within a
975 specified period of time;
976 4. Set a limit on the amount of time that can be played
977 after logging on to the Internet poker hub; or
978 5. Prevent the Internet poker hub from allowing the
979 registered player to play for an indefinite period of time.
980 (l) During play, in order to assist a registered player to
981 decide whether to suspend play, the registered player’s screen
982 shall:
983 1. Indicate how long the player has been playing;
984 2. Indicate the player’s winnings or losses since the time
985 of last logging in;
986 3. Give an option to the player to end the session or
987 return to the game; and
988 4. Require the player to confirm that the player has read
989 the message.
990 (18) REGISTERED PLAYER ACCOUNTS; RECORDS AND REPORTS.—
991 (a) An Internet poker hub operator shall establish a book
992 of accounts, regularly audit, and make all financial records
993 available to the division. An Internet poker hub operator shall
994 demonstrate that it has a system of maintaining records and
995 reports that are readily available to the division. The records
996 and reports shall include the following:
997 1. Monthly auditable and aggregate financial statements of
998 gaming transactions.
999 2. Calculation of all fees payable to government.
1000 3. The identity of players.
1001 4. The balance on the player’s account at the start of a
1002 session of play.
1003 5. The wagers placed on each game time stamped by the games
1004 server.
1005 6. The result of each game time stamped by the games
1006 server.
1007 7. The amount won or lost by the player.
1008 8. The balance on the player’s account at the end of the
1009 game.
1010 (b) An Internet poker hub operator shall reconcile all data
1011 logs files regarding the registered players’ accounts on a
1012 monthly basis.
1013 (19) INTERNET POKER HUB OPERATOR; OBLIGATIONS; TECHNICAL
1014 SYSTEMS REQUIREMENTS.—
1015 (a) Before an Internet poker hub operator can begin
1016 intrastate Internet poker operations, an Internet poker hub
1017 operator shall establish a physical site in the state that will
1018 house the game and database servers and other components and
1019 equipment necessary to conduct intrastate Internet poker. In
1020 addition, managerial employees of the Internet poker hub
1021 operator who manage or oversee the daily operations of the
1022 Internet poker hub network must reside in the state.
1023 (b) An Internet poker hub operator shall put in place
1024 technical systems that materially aid the division in fulfilling
1025 its regulatory, consumer protection, and revenue-raising
1026 functions and allow the division unrestricted access to and the
1027 right to inspect the technical systems.
1028 (c) An Internet poker hub operator shall ensure that the
1029 network is protected from manipulation or tampering to affect
1030 the random probabilities of winning plays.
1031 (d) An Internet poker hub operator shall define and
1032 document its methodology for the following:
1033 1. The development, implementation, and maintenance of
1034 gaming software in a manner representative of industry best
1035 practice standards.
1036 2. Server connectivity requirements that include:
1037 a. Minimum game server connectivity requirements that
1038 ensure players are protected from losses due to connectivity
1039 problems.
1040 b. The system’s ability to recover all transactions
1041 involving player funds in the event of a failure or malfunction.
1042 c. Aborted game procedures.
1043 3. Ability of the system to recover all information
1044 required for viewing a game interrupted due to loss of
1045 connectivity.
1046 4. Consumer protection requirements.
1047 5. Responsible advertising, marketing, and promotion that
1048 ensure that players are not misled through advertising or
1049 promotional activities, and will ensure that the terms and
1050 conditions of their promotions are followed.
1051 6. Anti-money-laundering controls.
1052 7. Preventive and detective controls addressing money
1053 laundering and fraud risks which shall be documented and
1054 implemented.
1055 (e) An Internet poker hub operator shall retain all such
1056 documentation for at least 12 months.
1057 (20) FEE FOR PARTICIPATION.—An Internet poker hub operator
1058 shall charge a fee or a tournament fee to registered players for
1059 the right to participate in authorized games or tournaments
1060 conducted on a state Internet poker network. The participation
1061 fee may be a per-hand charge, a flat fee, an hourly rate, or a
1062 rake subject to the posted maximum amount but may not be based
1063 on the amount won by players. The fee shall be designated and
1064 conspicuously posted on the registered player’s screen prior to
1065 the start of each proposed or authorized game.
1066 (21) PROHIBITED RELATIONSHIPS.—
1067 (a) A proprietorship, partnership, corporation,
1068 subcontractor, or other entity must obtain a valid intrastate
1069 Internet poker business occupational license issued by the
1070 division to partner with, contract with, be associated with, or
1071 participate in the conduct of intrastate Internet poker
1072 operations with an Internet poker hub operator or a cardroom
1073 affiliate.
1074 (b) A person employed by or performing any function on
1075 behalf of the division may not:
1076 1. Be an officer, director, owner, or employee of any
1077 person or entity licensed by the division.
1078 2. Have or hold any interest, direct or indirect, in or
1079 engage in any commerce or business relationship with any person
1080 licensed by the division.
1081 (c) An employee of the division or a relative living in the
1082 same household as the employee may not play at any time on a
1083 state Internet poker network.
1084 (d) An occupational licensee of an Internet poker hub
1085 operator or a relative living in the same household as the
1086 occupational licensee may not play at any time on a state
1087 Internet poker network. This paragraph does not apply to an
1088 occupational licensee of a cardroom affiliate.
1089 (e) A cardroom affiliate licensee may not sell or lease all
1090 or a portion of a percentage of its cardroom licensed under s.
1091 849.086 to any person or entity who has accepted any wager of
1092 money or other consideration on any online gambling activity,
1093 including poker, from any Florida resident since October 13,
1094 2006. This paragraph does not apply if the person or entity who
1095 accepted the wager is licensed as an Internet poker hub operator
1096 or cardroom affiliate.
1097 (f) A cardroom affiliate licensee may not contract with any
1098 person or entity to operate the cardroom affiliate’s portal link
1099 to the state Internet poker network on its website, to conduct
1100 marketing or promotional activities, or to conduct any other
1101 aspects of business associated with the play of intrastate
1102 Internet poker if that person or entity has accepted any wager
1103 of money or other consideration on any online gambling activity,
1104 including poker, from any Florida resident since October 13,
1105 2006. This paragraph does not apply if the person or entity who
1106 accepted the wager is licensed as an Internet poker hub operator
1107 or cardroom affiliate.
1108 (22) PROHIBITED ACTS; PENALTIES.—
1109 (a) An Internet poker hub operator may conduct any proposed
1110 or authorized game under subsection (15) unless specifically
1111 prohibited by the division or by this section.
1112 (b) A person who has not attained 18 years of age may not
1113 hold an intrastate Internet poker occupational license or engage
1114 in any game conducted therein.
1115 (c) It is a violation of the laws of this state for any
1116 entity to offer Internet poker for free or for money or any
1117 other consideration to individuals present in this state unless
1118 that entity can demonstrate that it is in compliance with the
1119 laws and tax regulations of the United States and of this state.
1120 (d) Any entity that has accepted any wager of money or
1121 other consideration on any online gambling activity, including
1122 poker, from any Florida resident since October 13, 2006, is not
1123 eligible to apply for licensure and participate in intrastate
1124 Internet poker in this state for a period of 3 years after the
1125 effective date of this act. However, this prohibition does not
1126 disqualify an applicant or subcontractor who accepts online
1127 pari-mutuel wagers from any Florida resident through a legal
1128 online pari-mutuel wagering entity authorized in another state.
1129 (e) Except as otherwise provided by law and in addition to
1130 any other penalty, any person who knowingly makes or causes to
1131 be made, or aids, assists, or procures another to make, a false
1132 statement in any report, disclosure, application, or other
1133 document required under this section or any rule adopted under
1134 this section is subject to an administrative fine of up to
1135 $10,000.
1136 (f) Any person who manipulates or attempts to manipulate
1137 the outcome, payoff, or operation of the play of intrastate
1138 Internet poker by tampering, collusion, or fraud, or by the use
1139 of any object, instrument, or device, by any means, commits a
1140 felony of the third degree, punishable as provided in s.
1141 775.082, s. 775.083, or s. 775.084.
1142 (g) All penalties imposed and collected under this
1143 subsection shall be deposited into the Pari-mutuel Wagering
1144 Trust Fund.
1145 (23) LICENSE FEES.—
1146 (a) Upon submission of the initial application and
1147 proposal, the applicant for an Internet poker hub operator
1148 license shall pay an initial filing fee of $25,000 to compensate
1149 the division for reasonably anticipated costs to be incurred to
1150 conduct a comprehensive investigation of the applicant to
1151 determine if the applicant is legally, technically, and
1152 financially qualified to become an Internet poker hub operator
1153 and is suitable for licensure. The division shall, by rule,
1154 require the applicant to make an additional payment if necessary
1155 to complete the investigation; however, the total amount
1156 collected under this paragraph may not exceed the actual cost
1157 incurred to conduct the investigation. The division shall, by
1158 rule, set a procedure for refunding any amount of the filing fee
1159 and additional payment collected under this paragraph which is
1160 not used to cover the cost of the investigation.
1161 (b) Upon submission of the initial application for an
1162 Internet poker hub operator license, and annually thereafter, on
1163 the anniversary date of the issuance of the initial license, an
1164 internet poker hub operator licensee shall pay a nonrefundable
1165 license fee of $500,000 for the succeeding 12 months of
1166 licensure to fund the division’s regulation and oversight of the
1167 operation and play of intrastate Internet poker.
1168 (c) Upon submission of the initial application for a
1169 cardroom affiliate license, and annually thereafter, as required
1170 in subsection (11)(b), a cardroom affiliate licensee shall pay a
1171 nonrefundable license fee of $1,000 for the succeeding 12 months
1172 of licensure.
1173 (d) All funds received under this section shall be
1174 deposited by the division with the Chief Financial Officer to
1175 the credit of the Pari-mutuel Wagering Trust Fund.
1176 (24) ADVANCE PAYMENT BY AN INTERNET POKER HUB OPERATOR.
1177 Upon the awarding of a contract to be an Internet poker hub
1178 operator by the division under subsection (6), an Internet poker
1179 hub operator licensee shall pay to the division a nonrefundable
1180 payment of $10 million. This payment shall be treated as an
1181 advance payment to the state by each Internet poker hub operator
1182 and shall be credited against the tax on monthly gross receipts
1183 derived from the play of intrastate Internet poker under
1184 paragraph (25)(a) until the original amount is recouped by each
1185 Internet poker hub operator.
1186 (25) TAX RATE; OTHER PAYMENTS; PENALTIES.—
1187 (a) Each Internet poker hub operator shall pay a tax to the
1188 state of 10 percent of the operator’s monthly gross receipts
1189 derived from the play of intrastate Internet poker. However, an
1190 Internet poker hub operator shall pay no taxes under this
1191 paragraph until the full amount of the advance payment made by
1192 that poker hub operator under subsection (24) has been credited
1193 against the tax. Credit of the advance payment toward the tax
1194 shall be made upon receipt by the division of the monthly report
1195 required under paragraph (b).
1196 (b) The gross receipts tax imposed by this section shall be
1197 paid to the division. Each Internet poker hub operator shall
1198 remit the gross receipts tax and licensee fees to the division
1199 to be deposited with the Chief Financial Officer, to the credit
1200 of the Pari-mutuel Wagering Trust Fund. Such payments shall be
1201 remitted to the division by electronic funds transfer on the 5th
1202 day of each calendar month for taxes and fees imposed for the
1203 preceding month’s intrastate Internet poker activities.
1204 Licensees shall file a report under oath by the 5th day of each
1205 calendar month for all taxes remitted during the preceding
1206 calendar month. Such payments shall be accompanied by a report
1207 under oath showing all intrastate Internet poker activities for
1208 the preceding calendar month and such other information as may
1209 be prescribed by the division.
1210 (c) A licensee who fails to make tax payments as required
1211 under this section is subject to an administrative penalty of up
1212 to $10,000 for each day the tax payment is not remitted. All
1213 penalties imposed and collected under this subsection shall be
1214 deposited in the Pari-mutuel Wagering Trust Fund. If a licensee
1215 fails to pay penalties imposed by order of the division under
1216 this subsection, the division may suspend, revoke, or refuse to
1217 renew the license of an Internet poker hub operator or cardroom
1218 affiliate.
1219 (d) All of the moneys deposited in the Pari-mutuel Wagering
1220 Trust Fund under this section shall be utilized and distributed
1221 in the manner specified in s. 550.135(1) and (2).
1222 (26) DISTRIBUTION OF INCOME DERIVED FROM THE PLAY OF
1223 INTERNET POKER.—
1224 (a) After the tax on the monthly gross receipts derived
1225 from the play of intrastate Internet poker is paid to the state
1226 as specified under subsection (25), the remaining monthly gross
1227 receipts shall be distributed by the Internet poker hub
1228 operators as follows:
1229 1. Seventy percent shall be distributed to eligible
1230 licensed cardroom affiliates.
1231 a.(I) Fifty percent shall be divided and distributed among
1232 the cardroom affiliates based on each cardroom affiliate’s total
1233 rake generated from the play of authorized games defined in s.
1234 849.086(2)(a) for the previous state fiscal year divided by the
1235 total previous year’s rake for all the cardroom affiliates, as
1236 determined by the division.
1237 (II) Fifty percent shall be divided and distributed to the
1238 cardroom affiliates based on the amount wagered for the previous
1239 month through each cardroom affiliate’s portal as determined by
1240 the division, divided by the total amount wagered for the
1241 previous month through all cardroom affiliates’ portals.
1242 b. If two or more cardroom affiliates join together to
1243 operate a portal for purposes of sub-sub-subparagraphs a.(I) and
1244 (II), their portal wagers and previous year’s rake shall be
1245 combined.
1246 c. Each permitholder that receives payments under this
1247 subparagraph shall use at least 4 percent of its monthly gross
1248 receipts from the play of intrastate Internet poker to
1249 supplement pari-mutuel purses or prize money, respectively,
1250 during the permitholder’s current meet or no later than the next
1251 ensuing pari-mutuel meet.
1252 2. Twenty-five percent shall be retained by the Internet
1253 poker hub operators from which they shall pay all costs for the
1254 intrastate Internet poker hub operations.
1255 3. Four percent shall be retained by the Internet poker hub
1256 operators to fund statewide advertising, marketing, and
1257 promotion of the play of intrastate Internet poker on a state
1258 Internet poker network. The division shall perform an annual
1259 audit to verify that the Internet poker hub operators use such
1260 funds solely for the statewide advertising, marketing, and
1261 promotion of the play of intrastate Internet poker on a state
1262 Internet poker network.
1263 4. One percent shall fund services related to the
1264 prevention and treatment of compulsive and addictive gambling
1265 provided by the entity that is under contract with the division
1266 under s. 551.118(2). The division shall be responsible for the
1267 distribution and audit of the funds under this subparagraph.
1268 (b) The distribution of the preceding monthly gross
1269 receipts shall be by the 20th day of each calendar month.
1270 (c) The division shall ensure that all distributions are
1271 made in accordance with this section and may adopt rules to
1272 ensure the implementation and proper distribution of funds.
1273 (d) This subsection does not prevent individual cardrooms
1274 or a number of cardroom affiliates from joining together in a
1275 coalition for the purpose of the marketing and promotion of the
1276 play of intrastate Internet poker on a state Internet poker
1277 network.
1278 (27) SUSPENSION, REVOCATION, OR DENIAL OF LICENSE.—
1279 (a) The division may deny a license or the renewal of a
1280 license, or may suspend or revoke any license, when the
1281 applicant has: violated or failed to comply with section or any
1282 rule adopted pursuant to this section; knowingly caused, aided,
1283 abetted, or conspired with another to cause any person to
1284 violate this section or any rule adopted pursuant to this
1285 section; or obtained a license or permit by fraud,
1286 misrepresentation, or concealment; or if the holder of the
1287 license is no longer eligible under this section.
1288 (b) If a cardroom affiliate’s pari-mutuel permit or license
1289 is suspended or revoked by the division pursuant to chapter 550,
1290 or its cardroom operator’s license is suspended or revoked by
1291 the division pursuant to s. 849.086, the division shall suspend
1292 or revoke the cardroom affiliate’s license. If a cardroom
1293 affiliate’s license is suspended or revoked under this section,
1294 the division may, but is not required to, suspend or revoke the
1295 licensee’s cardroom operator’s license.
1296 (28) PENALTIES.—The division may revoke or suspend any
1297 Internet poker hub operator license or cardroom affiliate
1298 license issued under this section upon the willful violation by
1299 the licensee of this section or any rule adopted pursuant to
1300 this section.
1301 (a) Notwithstanding any other provision of law, the
1302 division may impose an administrative fine not to exceed $10,000
1303 for each violation against any person who has violated or failed
1304 to comply with this section or any rule adopted pursuant to this
1305 section.
1306 (b) Notwithstanding any other provision of law, the
1307 division may impose an administrative fine, not exceeding
1308 $100,000 for each count or separate offense, upon an Internet
1309 poker hub operator or a cardroom affiliate for willfully
1310 violating this section or any rule adopted pursuant to this
1311 section.
1312 (c) All penalties imposed and collected under this section
1313 shall be deposited into the Pari-mutuel Wagering Trust Fund.
1314 (29) RULEMAKING.—The division may adopt rules pursuant to
1315 ss. 120.536(1) and 120.54 to administer the provisions of this
1316 section.
1317 (30) LEGISLATIVE AUTHORITY; ADMINISTRATION OF SECTION.—The
1318 Legislature finds and declares that it has exclusive authority
1319 over the conduct of intrastate Internet poker in this state.
1320 Only the Division of Pari-mutuel Wagering and other authorized
1321 state agencies shall administer this section and regulate the
1322 intrastate Internet poker industry in the state, including
1323 operation of all Internet poker hub operators and cardroom
1324 affiliates, play of authorized games, and the Internet poker
1325 computer systems authorized in this section, as provided by law
1326 and rules adopted by the division.
1327 Section 3. This act shall take effect July 1, 2011.