Florida Senate - 2021 SB 392 By Senator Brandes 24-00667-21 2021392__ 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; requiring that certain penalties be 31 deposited into the department’s Operating Trust Fund; 32 providing a contingent effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1. Chapter 547, Florida Statutes, consisting of 37 sections 547.001, 547.002, 547.003, 547.004, 547.005, 547.006, 38 547.007, and 547.008, is created to read: 39 CHAPTER 547 40 SPORTS WAGERING 41 547.001 Definitions.—As used in this chapter, the term: 42 (1) “Collegiate sport or athletic event” means a sport or 43 athletic event offered or sponsored by or played in connection 44 with a public or private institution that offers educational 45 services beyond the secondary level. 46 (2) “Department” means the Department of the Lottery. 47 (3) “Licensee” means an entity that holds a license issued 48 by the department to operate an online sports pool. 49 (4) “Professional sport or athletic event” means an event 50 at which two or more persons participate in sports or athletic 51 events and receive compensation in excess of actual expenses for 52 their participation in such event. 53 (5) “Sports event” means any professional sport or athletic 54 event, any Olympic or international sports competition event, 55 and any collegiate sports or athletic event, or any portion 56 thereof, including, but not limited to, the individual 57 performance statistics of athletes in a sports event or 58 combination of sports events. The term does not include any high 59 school or youth sports event. 60 (6) “Sports pool” means the business of accepting wagers on 61 any sports event by any system or method of wagering other than 62 pari-mutuel, as defined in s. 550.002, including, but not 63 limited to, single-game bets, teaser bets, parlays, over-under, 64 moneyline, pools, proposition bets, exchange wagering, in-game 65 wagering, in-play bets, and straight bets. 66 547.002 Sports wagering authorized.—Notwithstanding any 67 other law, a person who is 21 years of age or older may wager 68 money or any other thing of value on a sports event if the wager 69 is placed with the department or a licensee and the person is 70 physically present in this state. 71 547.003 Authority of department.—The department shall 72 administer this chapter and regulate the operation of sports 73 pools under this chapter and the rules adopted pursuant thereto 74 and shall: 75 (1) Adopt rules to implement this chapter, including, but 76 not limited to, rules: 77 (a) Requiring a licensee to maintain a specified amount of 78 cash reserves; 79 (b) Relating to the acceptance of wagers on a series of 80 sports events; 81 (c) Setting a limit on the maximum wager that a person may 82 place on a single sports event; 83 (d) Regulating the method of accounting licensees must use 84 and what records must be kept; 85 (e) Regulating the use of credit and checks by persons 86 wagering; 87 (f) Requiring protections for persons wagering; 88 (g) Requiring licensees to provide patrons with warnings 89 about gambling addiction and information on where to get help; 90 and 91 (h) Regulating the locations and use of self-service 92 betting kiosks. 93 (2) Conduct investigations and monitor the operation of 94 sports pools. 95 (3) Review the books, accounts, and records of any current 96 or former licensee. 97 (4) Suspend or revoke any license issued under this 98 chapter, after a hearing, for any violation of this chapter or 99 the administrative rules adopted pursuant thereto. 100 (5) Take testimony, issue summons and subpoenas for any 101 witness, and issue subpoenas duces tecum in connection with any 102 matter within its jurisdiction. 103 547.004 Sports wagering licenses.— 104 (1) A person may apply to the department for a license to 105 operate a sports pool. 106 (2) All applications submitted pursuant to this section 107 must be on a form prescribed by the department and adopted by 108 rule. 109 (3) A licensee must annually renew a license issued under 110 this section. 111 547.005 Sports pools.— 112 (1) A sports pool may not be offered by any person other 113 than the department or a licensee. 114 (2) A licensee may accept wagers only from persons who are 115 21 years of age or older and who are wagering through a website 116 or application offered under subsection (3), and the department 117 may accept wagers only from persons who are 21 years of age or 118 older and who are wagering at a self-service kiosk operated by 119 the department. 120 (3)(a) A licensee may have individually branded websites 121 for the purposes of offering a sports pool, each of which may 122 have an accompanying mobile application bearing the same brand 123 as the website. 124 (b) Until a license is received from the department, an 125 applicant may not make a website or application available to the 126 public and may not accept wagers unless the wagers are strictly 127 for testing purposes and nothing of value is wagered or 128 exchanged. 129 (4) The department or licensees may provide promotional 130 credits, incentives, bonuses, complimentaries, or similar 131 benefits designed to induce a person to wager. 132 (5) A licensee must perform background checks on all of its 133 employees and must provide any documentation relating to the 134 background checks and a list identifying all of the licensee’s 135 employees to the department upon request. 136 547.006 Prohibitions.— 137 (1)(a) The following persons are prohibited from wagering 138 on a sports event that is overseen by the person’s sports 139 governing body based on publicly available information: 140 1. An athlete, a coach, a referee, or a director of a 141 sports governing body or any of such body’s member teams. 142 2. A person who is a direct or indirect legal or beneficial 143 owner of 10 percent or greater of a sports governing body or any 144 of such body’s member teams. 145 3. A sports governing body or any of such body’s member 146 teams. 147 4. A person who holds a position of authority or influence 148 sufficient to exert influence over the participants in a sports 149 event, including, but not limited to, a coach, manager, handler, 150 or trainer. 151 5. A person with access to exclusive information on any 152 sports event overseen by his or her sports governing body. 153 6. A person identified by any lists of prohibited persons 154 provided to the department by a sports governing body. The 155 department must provide licensees with any such list upon 156 receipt. 157 (b) This subsection does not apply to any person who is a 158 direct or indirect owner of a sports governing body member team 159 and the shares of such person are registered pursuant to s. 12 160 of the Securities Exchange Act of 1934 and the value of the 161 ownership of such team represents less than 1 percent of the 162 person’s total enterprise value. 163 (2) The department and licensees shall adopt procedures to 164 prevent persons who are prohibited from wagering on sports 165 events under subsection (1) from wagering on sports events. 166 Additionally, the department and licensees may not accept wagers 167 from any person whose identity is known to the department or 168 licensee and who: 169 (a) Is the director, officer, owner, or employee of the 170 department or licensee or any relative of such person living in 171 the same household; 172 (b) Has access to nonpublic confidential information held 173 by the department or licensee; or 174 (c) Is an agent or proxy for another person. 175 (3) A licensee must promptly notify the department of any 176 of the following: 177 (a) A criminal or disciplinary proceeding commenced against 178 the licensee or any of its employees in connection with the 179 operations of a sports pool. 180 (b) Abnormal betting activity or patterns that may indicate 181 a concern about the integrity of a sports event. 182 (c) Conduct that has the potential to corrupt a betting 183 outcome of a sports event for purposes of financial gain, 184 including, but not limited to, match fixing. 185 (d) Suspicious or illegal wagering activities, including, 186 but not limited to, the use of funds derived from illegal 187 activity, wagers to conceal or launder funds derived from 188 illegal activity, agents to place wagers, or false 189 identification. 190 547.007 Unclaimed winnings.—If a person does not claim a 191 winning wager within 1 year after the wager is graded, the 192 obligation of the department or the licensee to pay the winnings 193 expires and the funds must be distributed as follows: 194 (1) For wagers placed at a self-service kiosk operated by 195 the department, 100 percent to the Operating Trust Fund created 196 under s. 24.120. 197 (2) For wagers placed through a website or application 198 offered by a licensee, 50 percent retained by the licensee and 199 the remaining 50 percent to the Operating Trust Fund. 200 547.008 Penalties.— 201 (1) Except as otherwise provided by law and in addition to 202 any other penalty, any person who knowingly makes or causes to 203 be made, or aids, assists, or procures another to make, a false 204 statement in any report, disclosure, or application, or any 205 other document required under this chapter or any rule adopted 206 under this chapter, is subject to an administrative fine or 207 civil penalty of up to $10,000. 208 (2) Any person who violates s. 547.006 is subject to an 209 administrative fine or civil penalty of up to $1,000 per 210 violation. 211 (3) Any person who operates a sports pool without a valid 212 license issued pursuant to this chapter commits a felony of the 213 third degree, punishable as provided in s. 775.082, s. 775.083, 214 or s. 775.084. 215 (4) Any licensee who violates any provision of this chapter 216 commits a misdemeanor of the first degree, punishable as 217 provided in s. 775.082 or s. 775.083. Any licensee who commits a 218 second or subsequent violation of the same paragraph or 219 subsection within a period of 3 years from the date of a prior 220 conviction for a violation of such paragraph or subsection 221 commits a felony of the third degree, punishable as provided in 222 s. 775.082, s. 775.083, or s. 775.084. 223 (5) Any person who knowingly excludes, or takes any action 224 in an attempt to exclude, anything of value from the deposit, 225 counting, collection, or computation of revenues from sports 226 wagering activity, or any person who by trick, sleight-of-hand 227 performance, a fraud or fraudulent scheme, or device wins or 228 attempts to win, for himself or herself or for another, money or 229 property or a combination thereof or reduces or attempts to 230 reduce a losing wager in connection with sports wagering commits 231 a felony of the third degree, punishable as provided in s. 232 775.082, s. 775.083, or s. 775.084. 233 (6) Theft of any sports wagering proceeds belonging to a 234 licensee by an employee of the licensee or by an employee of a 235 person, firm, or entity that has contracted to provide services 236 to the licensee constitutes a felony of the third degree, 237 punishable as provided in s. 775.082 or s. 775.083. 238 (7) All penalties imposed and collected under this section 239 must be deposited into the department’s Operating Trust Fund. 240 Section 2. This act shall take effect October 1, 2021, if 241 SB ___ and SB ___ or similar legislation are adopted in the same 242 legislative session or an extension thereof and become law.