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. 31 32 Be It Enacted by the Legislature of the State of Florida: 33 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 39 547.001 Definitions.—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. 64 547.002 Sports 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. 69 547.003 Authority 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. 101 547.004 Sports 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. 109 547.005 Sports 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. 134 547.006 Prohibitions.— 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. 188 547.007 Unclaimed 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. 198 547.008 Penalties.— 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.