Florida Senate - 2020                                     SB 968
       By Senator Brandes
       24-00720B-20                                           2020968__
    1                        A bill to be entitled                      
    2         An act relating to sports wagering; creating ch. 547,
    3         F.S.; defining terms; authorizing certain persons to
    4         place wagers on a sports event under certain
    5         circumstances; providing duties and responsibilities
    6         of the Department of the Lottery relating to sports
    7         pools; requiring the department to adopt rules;
    8         authorizing persons to apply to the department for a
    9         license to operate a sports pool; providing
   10         requirements for such application; requiring licensees
   11         to annually renew their licenses; prohibiting sports
   12         pools from being offered by anyone other than the
   13         department or a licensee; specifying requirements for
   14         accepting wagers on sports events; authorizing a
   15         licensee to have certain websites and applications
   16         under certain circumstances; authorizing the
   17         department or licensees to provide certain benefits to
   18         induce a person to wager; requiring licensees to
   19         perform background checks on all employees and provide
   20         certain documentation to the department upon request;
   21         prohibiting certain persons from wagering under
   22         certain circumstances; providing applicability;
   23         requiring the department and licensees to adopt
   24         certain procedures to prevent certain persons from
   25         wagering; prohibiting the department and licensees
   26         from accepting wagers from certain persons; requiring
   27         a licensee to promptly notify the department of
   28         certain information; providing for the disbursement of
   29         unclaimed winnings; providing civil and criminal
   30         penalties; providing a contingent effective date.
   32  Be It Enacted by the Legislature of the State of Florida:
   34         Section 1. Chapter 547, Florida Statutes, consisting of
   35  sections 547.001, 547.002, 547.003, 547.004, 547.005, 547.006,
   36  547.007, and 547.008, is created to read:
   37                             CHAPTER 547                           
   38                           SPORTS WAGERING                         
   39         547.001Definitions.—As used in this chapter, the term:
   40         (1)“Collegiate sport or athletic event” means a sport or
   41  athletic event offered or sponsored by or played in connection
   42  with a public or private institution that offers educational
   43  services beyond the secondary level.
   44         (2)Department” means the Department of the Lottery.
   45         (3)Licensee” means an entity that holds a license issued
   46  by the department to operate an online sports pool.
   47         (4) “Professional sport or athletic event” means an event
   48  at which two or more persons participate in sports or athletic
   49  events and receive compensation in excess of actual expenses for
   50  their participation in such event.
   51         (5) “Sports event” means any professional sport or athletic
   52  event, any Olympic or international sports competition event,
   53  and any collegiate sports or athletic event, or any portion
   54  thereof, including, but not limited to, the individual
   55  performance statistics of athletes in a sports event or
   56  combination of sports events. The term does not include any high
   57  school or youth sports event.
   58         (6)“Sports pool” means the business of accepting wagers on
   59  any sports event by any system or method of wagering other than
   60  pari-mutuel, as defined in s. 550.002, including, but not
   61  limited to, single-game bets, teaser bets, parlays, over-under,
   62  moneyline, pools, proposition bets, exchange wagering, in-game
   63  wagering, in-play bets, and straight bets.
   64         547.002Sports wagering authorized.—Notwithstanding any
   65  other law, a person who is 21 years of age or older may wager
   66  money or any other thing of value on a sports event if the wager
   67  is placed with the department or a licensee and the person is
   68  physically present in this state.
   69         547.003Authority of department.—The department shall
   70  administer this chapter and regulate the operation of sports
   71  pools under this chapter and the rules adopted pursuant thereto
   72  and shall:
   73         (1)Adopt rules to implement this chapter, including, but
   74  not limited to, rules:
   75         (a)Requiring a licensee to maintain a specified amount of
   76  cash reserves;
   77         (b)Relating to the acceptance of wagers on a series of
   78  sports events;
   79         (c)Setting a limit on the maximum wager that a person may
   80  place on a single sports event;
   81         (d)Regulating the method of accounting licensees must use
   82  and what records must be kept;
   83         (e)Regulating the use of credit and checks by persons
   84  wagering;
   85         (f)Requiring protections for persons wagering;
   86         (g)Requiring licensees to provide patrons with warnings
   87  about gambling addiction and information on where to get help;
   88  and
   89         (h)Regulating the locations and use of self-service
   90  betting kiosks.
   91         (2)Conduct investigations and monitor the operation of
   92  sports pools.
   93         (3)Review the books, accounts, and records of any current
   94  or former licensee.
   95         (4)Suspend or revoke any license issued under this
   96  chapter, after a hearing, for any violation of this chapter or
   97  the administrative rules adopted pursuant thereto.
   98         (5)Take testimony, issue summons and subpoenas for any
   99  witness, and issue subpoenas duces tecum in connection with any
  100  matter within its jurisdiction.
  101         547.004Sports wagering licenses.—
  102         (1)A person may apply to the department for a license to
  103  operate a sports pool.
  104         (2)All applications submitted pursuant to this section
  105  must be on a form prescribed by the department and adopted by
  106  rule.
  107         (3)A licensee must annually renew a license issued under
  108  this section.
  109         547.005Sports pools.—
  110         (1)A sports pool may not be offered by any person other
  111  than the department or a licensee.
  112         (2)A licensee may accept wagers only from persons who are
  113  21 years of age or older and who are wagering through a website
  114  or application offered under subsection (3), and the department
  115  may accept wagers only from persons who are 21 years of age or
  116  older and who are wagering at a self-service kiosk operated by
  117  the department.
  118         (3)(a)A licensee may have individually branded websites
  119  for the purposes of offering a sports pool, each of which may
  120  have an accompanying mobile application bearing the same brand
  121  as the website.
  122         (b)Until a license is received from the department, an
  123  applicant may not make a website or application available to the
  124  public and may not accept wagers unless the wagers are strictly
  125  for testing purposes and nothing of value is wagered or
  126  exchanged.
  127         (4)The department or licensees may provide promotional
  128  credits, incentives, bonuses, complimentaries, or similar
  129  benefits designed to induce a person to wager.
  130         (5)A licensee must perform background checks on all of its
  131  employees and must provide any documentation relating to the
  132  background checks and a list identifying all of the licensee’s
  133  employees to the department upon request.
  134         547.006Prohibitions.—
  135         (1)(a)The following persons are prohibited from wagering
  136  on a sports event that is overseen by the person’s sports
  137  governing body based on publicly available information:
  138         1.An athlete, a coach, a referee, or a director of a
  139  sports governing body or any of such body’s member teams.
  140         2.A person who is a direct or indirect legal or beneficial
  141  owner of 10 percent or greater of a sports governing body or any
  142  of such body’s member teams.
  143         3.A sports governing body or any of such body’s member
  144  teams.
  145         4.A person who holds a position of authority or influence
  146  sufficient to exert influence over the participants in a sports
  147  event, including, but not limited to, a coach, manager, handler,
  148  or trainer.
  149         5.A person with access to exclusive information on any
  150  sports event overseen by his or her sports governing body.
  151         6.A person identified by any lists of prohibited persons
  152  provided to the department by a sports governing body. The
  153  department must provide licensees with any such list upon
  154  receipt.
  155         (b)This subsection does not apply to any person who is a
  156  direct or indirect owner of a sports governing body member team
  157  and the shares of such person are registered pursuant to s. 12
  158  of the Securities Exchange Act of 1934 and the value of the
  159  ownership of such team represents less than 1 percent of the
  160  person’s total enterprise value.
  161         (2)The department and licensees shall adopt procedures to
  162  prevent persons who are prohibited from wagering on sports
  163  events under subsection (1) from wagering on sports events.
  164  Additionally, the department and licensees may not accept wagers
  165  from any person whose identity is known to the department or
  166  licensee and who:
  167         (a)Is the director, officer, owner, or employee of the
  168  department or licensee or any relative of such person living in
  169  the same household;
  170         (b)Has access to nonpublic confidential information held
  171  by the department or licensee; or
  172         (c)Is an agent or proxy for another person.
  173         (3)A licensee must promptly notify the department of any
  174  of the following:
  175         (a)A criminal or disciplinary proceeding commenced against
  176  the licensee or any of its employees in connection with the
  177  operations of a sports pool.
  178         (b)Abnormal betting activity or patterns that may indicate
  179  a concern about the integrity of a sports event.
  180         (c)Conduct that has the potential to corrupt a betting
  181  outcome of a sports event for purposes of financial gain,
  182  including, but not limited to, match fixing.
  183         (d)Suspicious or illegal wagering activities, including,
  184  but not limited to, the use of funds derived from illegal
  185  activity, wagers to conceal or launder funds derived from
  186  illegal activity, agents to place wagers, or false
  187  identification.
  188         547.007Unclaimed winnings.—If a person does not claim a
  189  winning wager within 1 year after the wager is graded, the
  190  obligation of the department or the licensee to pay the winnings
  191  expires and the funds must be distributed as follows:
  192         (1)For wagers placed at a self-service kiosk operated by
  193  the department, 100 percent to the Operating Trust Fund created
  194  under s. 24.120.
  195         (2)For wagers placed through a website or application
  196  offered by a licensee, 50 percent retained by the licensee and
  197  the remaining 50 percent to the Operating Trust Fund.
  198         547.008Penalties.—
  199         (1) Except as otherwise provided by law and in addition to
  200  any other penalty, any person who knowingly makes or causes to
  201  be made, or aids, assists, or procures another to make, a false
  202  statement in any report, disclosure, or application, or any
  203  other document required under this chapter or any rule adopted
  204  under this chapter, is subject to an administrative fine or
  205  civil penalty of up to $10,000.
  206         (2)Any person who violates s. 547.006 is subject to an
  207  administrative fine or civil penalty of up to $1,000 per
  208  violation.
  209         (3) Any person who operates a sports pool without a valid
  210  license issued pursuant to this chapter commits a felony of the
  211  third degree, punishable as provided in s. 775.082, s. 775.083,
  212  or s. 775.084.
  213         (4) Any licensee who violates any provision of this chapter
  214  commits a misdemeanor of the first degree, punishable as
  215  provided in s. 775.082 or s. 775.083. Any licensee who commits a
  216  second or subsequent violation of the same paragraph or
  217  subsection within a period of 3 years from the date of a prior
  218  conviction for a violation of such paragraph or subsection
  219  commits a felony of the third degree, punishable as provided in
  220  s. 775.082, s. 775.083, or s. 775.084.
  221         (5) Any person who knowingly excludes, or takes any action
  222  in an attempt to exclude, anything of value from the deposit,
  223  counting, collection, or computation of revenues from sports
  224  wagering activity, or any person who by trick, sleight-of-hand
  225  performance, a fraud or fraudulent scheme, or device wins or
  226  attempts to win, for himself or herself or for another, money or
  227  property or a combination thereof or reduces or attempts to
  228  reduce a losing wager in connection with sports wagering commits
  229  a felony of the third degree, punishable as provided in s.
  230  775.082, s. 775.083, or s. 775.084.
  231         (6) Theft of any sports wagering proceeds belonging to a
  232  licensee by an employee of the licensee or by an employee of a
  233  person, firm, or entity that has contracted to provide services
  234  to the licensee constitutes a felony of the third degree,
  235  punishable as provided in s. 775.082 or s. 775.083.
  236         (7) All penalties imposed and collected under this section
  237  must be deposited into the department’s Operating Trust Fund.
  238         Section 2. This act shall take effect October 1, 2020, if
  239  SB ___ and SB ___ or similar legislation are adopted in the same
  240  legislative session or an extension thereof and become law.