Connecticut Seal

General Assembly

Amendment

 

February Session, 2018

LCO No. 4608

   
 

*HB0530704608HDO*

Offered by:

 

REP. VERRENGIA, 20th Dist.

REP. BERGER, 73rd Dist.

 

To: House Bill No. 5307

File No. 189

Cal. No. 148

"AN ACT CONCERNING SPORTS WAGERING IN THE STATE."

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section 1. (NEW) (Effective July 1, 2018) (a) As used in this section, unless the context otherwise requires:

(1) "Casino gaming facility" has the same meaning as provided in section 12-557b of the general statutes;

(2) "Commission" means the Gaming Commission established pursuant to section 5 of this act;

(3) "Commissioner" means the Commissioner of Consumer Protection;

(4) "Department" means the Department of Consumer Protection;

(5) "Mashantucket Pequot memorandum of understanding" means the memorandum of understanding entered into by and between the state and the Mashantucket Pequot Tribe on January 13, 1993, as amended on April 30, 1993;

(6) "Mashantucket Pequot procedures" means the Final Mashantucket Pequot Gaming Procedures prescribed by the Secretary of the United States Department of the Interior pursuant to Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 56 Federal Register 24996 (May 31, 1991);

(7) "Minor" means any person who is under twenty-one years of age;

(8) "Mobile sports wagering platform" or "platform" means the combination of hardware, software and data networks used by a sports wagering operator or the Connecticut Lottery Corporation established pursuant to section 12-802 of the general statutes to manage, administer, offer or control sports wagering over the Internet, including through an Internet web site or a mobile device;

(9) "Mohegan compact" means the Tribal-State Compact entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994;

(10) "Mohegan memorandum of understanding" means the memorandum of understanding entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994;

(11) "Sports bettor" means a person who is physically present in the state when placing a sports wager with a sports wagering operator or the Connecticut Lottery Corporation;

(12) "Sporting event" means (A) any sporting or athletic event at which two or more persons participate and receive compensation in excess of actual expenses for such participation in such sporting or athletic event, or (B) any sporting or athletic event sponsored by an intercollegiate athletic program of an institution of higher education. "Sporting event" does not include horse racing or any sporting or athletic event sponsored by a minor league or high school;

(13) "Sports governing body" means the organization that prescribes final rules and enforces codes of conduct with respect to a sporting event and participants therein;

(14) "Sports wagering" means placing or accepting wagers on (A) a sporting event or a portion or portions of a sporting event, or (B) the individual performance statistics of an athlete or athletes in a sporting event or a combination of sporting events, by any system or method of wagering, including, but not limited to, in-person or over the Internet through an Internet web site or a mobile device. "Sports wagering" does not include fantasy contests, as defined in section 12-578aa of the general statutes, as amended by this act;

(15) "Sports wagering gross revenue" means (A) the amount equal to the total amount of all wagers placed on sporting events not excluded from sports wagering that a sports wagering operator collects from all sports bettors, less the total amount of all sums paid out as winnings to sports bettors, except that the cash equivalent value of any merchandise or thing of value awarded as a prize shall not be included in the sums paid out as winnings, or (B) in the case of exchange wagering, the amount equal to the total amount of commissions retained by an operator on winning sports wagers placed by sports bettors; and

(16) "Sports wagering operator" or "operator" means any person or business organization operating the off-track betting system or limited liability company operating a casino gaming facility that offers sports wagering in person to individuals at such facilities or through a mobile sports wagering platform.

(b) The provisions of this section shall not be effective unless the following conditions have been met:

(1) Sports wagering is offered to the extent permitted under federal law.

(2) (A) The Governor enters into new tribal-state compacts with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut pursuant to the federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2710(d)(3) concerning the authorization of sports wagering. Any such tribal-state compact shall: (i) Allow each tribe to offer sports wagering on any casino gaming facility located on Indian lands, (ii) provide that the authorization of sports wagering in the state does not relieve each tribe from each tribe's obligation to contribute a percentage of the gross operating revenues of video facsimile games to the state as provided in the Mashantucket Pequot memorandum of understanding and the Mohegan memorandum of understanding, and (iii) provide that the authorization of sports wagering in the state does not terminate the moratoria on the operation of video facsimile games by the tribes pursuant to section 15(a) of the Mashantucket Pequot procedures and section 15(a) of the Mohegan compact.

(B) The new tribal-state compacts are approved or deemed approved by the Secretary of the United States Department of the Interior pursuant to the federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its implementing regulations. If such approval is overturned by a court in a final judgment, which is not appealable, the authorization provided under this section shall cease to be effective.

(C) The new tribal-state compacts are approved by the General Assembly pursuant to section 3-6c of the general statutes.

(c) (1) No person or business organization operating the off-track betting system or limited liability company operating a casino gaming facility may offer sports wagering unless such person, business organization or limited liability company has obtained a license to operate sports wagering issued by the Commissioner of Consumer Protection pursuant to this subsection. Notwithstanding the provisions of this subdivision, the Connecticut Lottery Corporation may offer sports wagering through a mobile sports wagering platform and a lottery sales agent may offer sports wagering at such agent's place of business without obtaining a license to operate sports wagering.

(2) No person or business organization may operate sports wagering or develop or operate a mobile sports wagering platform on behalf of a sports wagering operator or the Connecticut Lottery Corporation unless such person or business organization holds a sports wagering vendor license issued by the commissioner pursuant to this subsection.

(3) No person may commence or continue employment with a sports wagering operator in a sports wagering capacity unless such person holds a sports wagering employee license issued by the commissioner pursuant to this subsection.

(4) Each applicant for a license issued pursuant to this section shall submit a completed application on forms prescribed by the commissioner. Such application may require the applicant to submit information as to: (A) Financial standing and credit, (B) moral character, (C) criminal record, if any, (D) previous employment, (E) corporate, partnership or association affiliations, (F) ownership of personal assets, and (G) any other information as the commissioner deems pertinent to the issuance of such license. Each applicant shall submit to state and national criminal history records checks, conducted in accordance with section 29-17a of the general statutes, before such license is issued.

(5) (A) Each application and renewal application for a license to operate sports wagering shall be accompanied by a nonrefundable application fee of one hundred thousand dollars. The biennial fee for such license shall be five hundred thousand dollars.

(B) Each application and renewal application for a sports wagering vendor license shall be accompanied by a nonrefundable application fee of one hundred thousand dollars. The biennial fee for such license shall be three hundred thousand dollars.

(C) The biennial fee for a sports wagering employee license shall be eighty dollars.

(D) Any amounts received by the commissioner pursuant to this section shall be deposited in the sports wagering account established pursuant to section 2 of this act.

(6) The commissioner shall, as soon as practicable after the receipt of a completed license application, grant or deny the license application. Any license issued by the commissioner pursuant to this subsection shall be effective for not more than two years from the date of issuance. Applications for renewal of any such license shall be on such form as prescribed by the commissioner. Any holder of a license issued pursuant to this subsection who submits an application to renew such license may continue to operate sports wagering, operate a mobile sports wagering platform or sports wagering on behalf of a sports wagering operator or the Connecticut Lottery Corporation, or be employed by a sports wagering operator until the commissioner denies such renewal application.

(7) Failure by any person or business organization or limited liability company that holds a license pursuant to this subsection to comply with the requirements of this section and any regulations adopted pursuant to this section shall constitute grounds for the commissioner: (A) To investigate any such licensee, (B) to suspend or revoke such license for good cause after a hearing held in accordance with the provisions of chapter 54 of the general statutes, and (C) to impose a fine of not more than five thousand dollars. Any licensee whose license is suspended or revoked or who is fined, or any applicant aggrieved by the action of the commissioner concerning an application for a license or renewal application, may appeal in accordance with the provisions of said chapter.

(d) (1) A sports wagering operator licensed under subsection (c) of this section or the Connecticut Lottery Corporation may offer sports wagering through a mobile sports wagering platform to individuals physically located in the state. Such operator or corporation may establish its own platform or may contract with a third party for the development or operation of a platform on behalf of the operator or corporation provided such third party holds a vendor license issued by the commissioner pursuant to subsection (c) of this section.

(2) At a minimum, each mobile sports wagering platform shall: (A) Verify that a person with a sports wagering account is twenty-one years of age or older and is located in the state; (B) establish a voluntary self-exclusion process to allow a person to exclude himself or herself from placing sports wagers; (C) establish a voluntary process to allow a person to limit the amount of money such person may use to place sports wagers; (D) provide a mechanism to prevent a person who participates in the self-exclusion process from placing sports wagers or who limits the amount of money such person may use to place sports wagers from exceeding such limits; (E) provide parental control procedures to allow a person with a sports wagering account to exclude minors from access to the platform; (F) permit a person to permanently close such person's sports wagering account at any time and for any reason; (G) prominently display introductory procedures for sports bettors on the main page of the platform that explain sports wagering; (H) offer a person access to such person's sports wagering account history and details; (I) provide that any money in a sports wagering account belongs solely to the owner of the account and may be withdrawn by the owner at any time; (J) provide a mechanism to prevent the unauthorized use of sports wagering accounts and maintain the security of wagering data, bettor's data and other confidential information; and (K) post a conspicuous link to responsible gambling information on all sports wagering account web pages.

(3) Prior to placing wagers on a mobile sports wagering platform, a sports bettor shall establish a sports wagering account in person at the casino gaming facility, off-track betting facility or Connecticut Lottery Corporation, as the case may be, and present at least two forms of identification at the time of establishing the sports wagering account.

(e) Each sports wagering operator, the Connecticut Lottery Corporation and a lottery sales agent offering sports wagering shall:

(1) Verify that a sports bettor is at least twenty-one years of age. Any individual may exclude himself or herself from placing sports wagers or limit the amount of money such individual may use to place sports wagers with an operator, corporation or lottery sales agent, and the operator, corporation or lottery sales agent that has been notified by such individual of such exclusion or limit shall take reasonable steps to prevent such individual from exceeding such exclusion or limit;

(2) Use whatever available data source such operator or corporation deems appropriate to determine the result of a sports wager;

(3) Report any suspicion of abnormal betting activity to the commissioner for immediate investigation by the commissioner; and

(4) Maintain the security of wagering data, customer data and other confidential information to prevent unauthorized access and dissemination.

(f) (1) No individual who is a sports wagering operator or is an officer, director, owner or employee of a sports wagering operator, and no family member of such individual who resides in the same household as such individual, shall place any wager with such operator.

(2) No athlete, coach, referee, team owner or employee of a sports governing body or such governing body's member teams, and no personnel of any bargaining unit of such governing body's athletes or referees, shall place any wager on any sporting event overseen by such governing body. In determining which individuals are prohibited from placing a wager under this subdivision, a sports wagering operator and the Connecticut Lottery Corporation shall use publicly available information and any lists provided by the relevant sports governing body to the Department of Consumer Protection.

(3) No individual with access to nonpublic, confidential information held by a sports wagering operator concerning a sporting event shall place any wager on such sporting event with any operator.

(4) No individual shall place any wager pursuant to this section as an agent or a proxy for another individual.

(5) Each sports wagering operator and the Connecticut Lottery Corporation shall take reasonable steps to prevent the conduct described under subdivisions (1) to (4), inclusive, of this subsection and shall immediately notify the commissioner if such operator or corporation believes such conduct has occurred.

(6) No prizes shall be paid to any individual who is restricted from placing wagers on sporting events pursuant to this subsection.

(g) A tax is imposed on sports wagering gross revenue earned by a sports wagering operator at the rate of nine and three-quarters per cent. The commissioner shall assess and collect such tax as the commissioner may prescribe by regulations adopted in accordance with the provisions of chapter 54 of the general statutes. Such tax shall be due and payable each Tuesday of the week. If any such tax is not paid when due, the commissioner shall impose a delinquency assessment upon the sports wagering operator in the amount of ten per cent of such tax or ten dollars, whichever amount is greater, plus interest at the rate of one and one-half per cent of the unpaid principal of such tax for each month or fraction of a month from the date such tax is due to the date of payment. Subject to the provisions of section 12-3a of the general statutes, the commissioner may waive all or part of the penalties provided under this subsection when it is proven to the commissioner's satisfaction that the failure to pay such tax within the time required was due to reasonable cause and was not intentional or due to neglect. Failure to pay any such delinquent tax upon demand may be considered by the commissioner as cause for revocation of a license to operate sports wagering. Any amounts paid pursuant to this subsection shall be deposited in the sports wagering account established pursuant to section 2 of this act.

(h) The amount of unclaimed moneys, as determined by the commissioner, held by a sports wagering operator on account of outstanding and uncashed winning sports wagering tickets, shall be due and payable to the commissioner, for deposit in the sports wagering account established pursuant to section 2 of this act, at the expiration of one year after the date of the sporting event during which such tickets were issued. If any such unclaimed moneys are not paid when due, the commissioner shall impose a delinquency assessment upon the sports wagering operator in the amount of ten per cent of such money or ten dollars, whichever amount is greater, plus interest at the rate of one and one-half per cent of the unpaid principal of such moneys for each month or fraction of a month from the date such moneys are due to the date of payment. Subject to the provisions of section 12-3a of the general statutes, the commissioner may waive all or part of the penalties provided under this subsection when it is proven to the commissioner's satisfaction that the failure to pay such moneys within the time required was due to reasonable cause and was not intentional or due to neglect.

(i) The commissioner may authorize deputies to enter upon the premises of a sports wagering operator, the Connecticut Lottery Corporation or a lottery sales agent's place of business for the purposes of inspecting books and records, supervising and examining cashiers, ticket sellers and other persons handling money on behalf of such operator, corporation or agent.

(j) The commissioner may restrict, limit or exclude wagering on a sporting event or events by providing notice in such form and manner as the commissioner prescribes to sports wagering operators and the Connecticut Lottery Corporation.

(k) (1) Each sports wagering operator, the Connecticut Lottery Corporation and any lottery sales agent that offers sports wagering shall immediately report to the commissioner any information relating to (A) criminal or disciplinary proceedings commenced against such operator, corporation or agent or an employee of such operator, corporation or agent in connection with its operations, (B) abnormal betting activity or patterns that may indicate a concern with the integrity of a sporting event, (C) any potential breach of the relevant sports governing body's internal rules or codes of conduct pertaining to sports wagering, (D) any other conduct that corrupts the betting outcome of a sporting event for purposes of financial gain, including match-fixing, and (E) suspicious or illegal wagering activities, including the use of funds derived from illegal activity to place a wager, the placing of a wager to conceal funds derived from illegal activity, the use of an agent or a proxy to place a wager or the use of false identification to place a wager.

(2) Such operator, corporation or agent shall also immediately report to the relevant sports governing body any information relating to conduct described under subparagraphs (B) to (D), inclusive, of subdivision (1) of this subsection.

(l) If the commissioner finds, after a hearing conducted pursuant to chapter 54 of the general statutes, that any individual or entity knowingly violates any provision of this section or any regulation adopted pursuant to subsection (m) of this section, the commissioner shall assess such individual or entity a civil penalty of not more than five thousand dollars for each violation, not to exceed fifty thousand dollars for multiple violations arising out of the same transaction or occurrence.

(m) The commissioner, in consultation with the commission, shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section. Such regulations shall include provisions to protect the public interest in the integrity of sports wagering and reduce the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of sports wagering. Such regulations shall include, but need not be limited to, provisions regarding: (1) The types of sports wagers that may be placed or accepted; (2) the minimum amount of cash reserves to be maintained by sports wagering operators; (3) the acceptance of wagers on a series of sports events; (4) the maximum wagers which may be accepted by an operator or the Connecticut Lottery Corporation from any one sports bettor on any one sports event; (5) the type of wagering tickets which shall be used; (6) the method of issuing tickets; (7) minimum accounting standards for a sports wagering operator or the corporation; (8) the types of records which shall be maintained by a sports wagering operator or the corporation and available for inspection upon the request of the commissioner; (9) requirements for information and reports from a sports wagering operator and the corporation to enable effective auditing of sports wagering operations; (10) requirements for establishing and funding a sports wagering account; (11) minimum qualifications for a provider of sporting events data; and (12) requirements for any advertisement for sports betting to ensure such advertisement (A) does not target minors, problem gamblers or other vulnerable individuals, (B) includes information about or Internet web site links to resources related to gambling addiction, and (C) is not false, misleading or deceptive to a reasonable consumer.

Sec. 2. (NEW) (Effective from passage) There is established an account to be known as the "sports wagering account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by the Secretary of the Office of Policy and Management for the purposes of compensating the Department of Consumer Protection for the reasonable and necessary costs incurred by the department for the regulatory activities specified in section 1 of this act. On and after the first full fiscal year that the secretary finds money has been deposited in the sports wagering account, the secretary shall contribute one-half of one per cent of the moneys deposited in the account during the previous fiscal year to the Connecticut Prevention Network. At the end of each fiscal year, the secretary shall transfer any money in excess of such reasonable and necessary costs and such contribution to the General Fund.

Sec. 3. Section 12-577 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The commissioner shall annually cause to be made by some competent person or persons in the department a thorough audit of the books and records of each association licensee under this chapter, [and] each casino gaming and each licensed sports wagering operator, as defined in subsection (a) of section 1 of this act, and the commissioner may, from time to time, cause to be made by some competent person in the department a thorough audit of the books and records of any other person or business organization licensed under this chapter. All such audit records shall be kept on file in the commissioner's office at all times. Each licensee and casino gaming facility shall permit access to its books and records for the purpose of having such audit made, and shall produce, upon written order of the commissioner, any documents and information required for such purpose.

Sec. 4. Subdivision (15) of subsection (b) of section 12-806 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(15) To determine the commissions payable to lottery sales agents, provided any agent's commission shall not average less than [four] seven per cent of such agent's lottery sales;

Sec. 5. (NEW) (Effective July 1, 2018) There is established a Gaming Commission composed of the Commissioner of Consumer Protection and two commissioners appointed by the Governor in accordance with section 4-9a of the general statutes. The Commissioner of Consumer Protection shall be the chairperson of the commission. The Governor shall fill any vacancy for the unexpired portion of the term. Not more than two commissioners shall be of the same political party. Each commissioner shall take the oath prescribed for executive officers. The Governor may remove any commissioner as provided in section 4-12 of the general statutes. The Gaming Commission shall be responsible for the implementation and administration of the provisions of sections 7-169 to 7-189, inclusive, of the general statutes, section 1 of this act, and chapters 226, 226b, and 229a of the general statutes.

Sec. 6. Section 21a-6 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

The following boards shall be within the Department of Consumer Protection:

(1) The Architectural Licensing Board established under chapter 390;

(2) Repealed by P.A. 93-151, S. 3, 4;

(3) The examining boards for electrical work; plumbing and piping work; heating, piping, cooling and sheet metal work; elevator installation, repair and maintenance work; fire protection sprinkler systems work and automotive glass work and flat glass work, established under chapter 393;

(4) Repealed by P.A. 99-73, S. 10;

(5) The Commission of Pharmacy established under chapter 400j;

(6) The State Board of Landscape Architects established under chapter 396;

(7) Deleted by P.A. 98-229;

(8) The State Board of Examiners for Professional Engineers and Land Surveyors established under chapter 391;

(9) Repealed by P.A. 80-484, S. 175, 176;

(10) The Connecticut Real Estate Commission established under chapter 392;

(11) The Connecticut Real Estate Appraisal Commission established under chapter 400g;

(12) The State Board of Examiners of Shorthand Reporters established under chapter 400l;

(13) The Liquor Control Commission established under chapter 545;

(14) Repealed by P.A. 06-187, S. 99;

(15) The Home Inspection Licensing Board established under section 20-490a; [and]

(16) The State Board of Accountancy established under section 20-280; and

(17) The Gaming Commission established under section 5 of this act.

Sec. 7. Subsection (c) of section 12-812 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

(c) On a weekly basis, the president shall estimate, and certify to the State Treasurer, that portion of the balance in the lottery fund which exceeds the current needs of the corporation for the payment of prizes, the payment of current operating expenses and funding of approved reserves of the corporation [. The] and that portion of the balance that is attributable to the proceeds of sports wagering, as defined in subsection (a) of section 1 of this act. Upon notification of receipt of such certification by the Treasurer, the corporation shall transfer the amount so certified from the lottery fund of the corporation to the General Fund, [upon notification of receipt of such certification by the Treasurer] except that the corporation shall transfer the amount attributable to the proceeds of sports wagering to the sports wagering account established pursuant to section 2 of this act.

Sec. 8. Subdivision (2) of section 53-278a of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(2) "Gambling" means risking any money, credit, deposit or other thing of value for gain contingent in whole or in part upon lot, chance or the operation of a gambling device, including the playing of a casino gambling game such as blackjack, poker, craps, roulette or a slot machine, but does not include: Legal contests of skill, speed, strength or endurance in which awards are made only to entrants or the owners of entries; legal business transactions which are valid under the law of contracts; activity legal under the provisions of sections 7-169 to 7-186, inclusive; any lottery or contest conducted by or under the authority of any state of the United States, Commonwealth of Puerto Rico or any possession or territory of the United States; and other acts or transactions expressly authorized by law on or after October 1, 1973. Fantasy contests, as defined in section 12-578aa, as amended by this act, shall not be considered gambling, provided the conditions set forth in subsection (b) of section 12-578aa, as amended by this act, have been met and the operator of such contests is registered pursuant to subdivision (1) of subsection (d) of section 12-578aa, as amended by this act. Sports wagering, as defined in subsection (a) of section 1 of this act, shall not be considered gambling, provided the conditions set forth in subsection (b) of section 1 of this act have been met and the sports wagering operator is licensed pursuant to subsection (c) of section 1 of this act, the Connecticut Lottery Corporation or a lottery sales agent;

Sec. 9. Subdivision (4) of section 53-278a of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(4) "Gambling device" means any device or mechanism by the operation of which a right to money, credits, deposits or other things of value may be created, as the result of the operation of an element of chance; any device or mechanism which, when operated for a consideration, does not return the same value or thing of value for the same consideration upon each operation thereof; any device, mechanism, furniture or fixture designed primarily for use in connection with professional gambling; and any subassembly or essential part designed or intended for use in connection with any such device, mechanism, furniture, fixture, construction or installation, provided an immediate and unrecorded right of replay mechanically conferred on players of pinball machines and similar amusement devices shall be presumed to be without value. "Gambling device" does not include a crane game machine or device or a redemption machine. A device or equipment used to play fantasy contests, as defined in section 12-578aa, as amended by this act, or participate in sports wagering, as defined in subsection (a) of section 1 of this act, shall not be considered a gambling device, provided the conditions set forth in subsection (b) of section 12-578aa, as amended by this act, have been met and in subsection (b) of section 1 of this act have been met, respectively;

Sec. 10. Section 12-561 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

No commissioner or unit head or employee of the department or the Gaming Commission, established pursuant to section 5 of this act, shall directly or indirectly, individually or as a member of a partnership or as a shareholder of a corporation, have any interest whatsoever in dealing in any lottery, racing, fronton, betting enterprise or casino gaming facility or in the ownership or leasing of any property or premises used by or for any lottery, racing, fronton, betting enterprise or casino gaming facility. No commissioner or unit head shall, directly or indirectly, wager at any off-track betting facility, race track or fronton authorized under this chapter, purchase lottery tickets issued under this chapter, [or] play, directly or indirectly, any authorized game conducted at a casino gaming facility or place a sports wager with a sports wagering operator, the Connecticut Lottery Corporation or a lottery sales agent authorized under section 1 of this act. The commissioner may adopt regulations in accordance with the provisions of chapter 54 to prohibit any employee of the department from engaging, directly or indirectly, in any form of legalized gambling activity in which such employee is involved because of his or her employment with the department. For purposes of this section, "unit head" means a managerial employee with direct oversight of a legalized gambling activity.

Sec. 11. Section 12-563a of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The Commissioner of Consumer Protection shall, within available resources, prepare and distribute informational materials designed to inform the public of the programs available for the prevention, treatment and rehabilitation of compulsive gamblers in this state. The commissioner shall require any casino gaming facility and any person or business organization which is licensed to sell lottery tickets, operate an off-track betting system or conduct wagering on racing events, [or] jai alai games or sporting events, as defined in subsection (a) section 1 of this act, to display such informational materials at the casino gaming facility and each licensed premise, respectively.

Sec. 12. (Effective from passage) (a) Not later than ninety days after the effective date of this section, the Commissioner of Consumer Protection shall develop and issue a request for proposals for professional services to recommend a strategic plan to expand and ensure the integrity of gambling in the state. The professional service provider shall have expertise in issues related to gambling, the expansion of gambling and the regulatory oversight of entities authorized to conduct gambling.

(b) At a minimum, the strategic plan shall:

(1) Analyze the economic impacts of all legal and current forms of gambling in the state, including, but not limited to, gambling at casino gaming facilities, and gambling facilitated by the Connecticut Lottery Corporation and off-track betting facilities;

(2) Contain a fiscal analysis to determine the impact of expanding gambling in the state (A) by amending the procedures, compact and agreements entered into by and between the state and the Mashantucket Pequot Tribe and the state and the Mohegan Tribe of Indians of Connecticut, and (B) without amending such procedures, compact and agreements;

(3) Identify the various approaches to expanding gambling in the state and analyze the economic impact and the fiscal and legal consequences if the state authorizes (A) any person, business entity or Indian tribe to operate one or more commercial casino gaming facilities within the state, (B) the Connecticut Lottery Corporation to sell tickets for lottery draw games online and accept payment through the use of a credit card, (C) the Connecticut Lottery Corporation, off-track betting facilities, the Mashantucket Pequot Tribe or the Mohegan Tribe of Indians of Connecticut, or any combination thereof, to conduct wagering on sporting events to the extent permitted by federal law, and (D) the operation of fantasy contests in the state without amending such procedures, compact and agreements; and

(4) Recommend a strategic plan that (A) implements the expansion of gambling in the state, (B) strengthens the regulatory oversight of entities authorized to conduct gambling in the state, (C) provides for the taxation of such expansion, and (D) includes best practices to protect the public interest in the integrity of gambling operations and reduce the dangers of unsuitable, unfair or illegal practices, methods and activities in such operations.

(c) The commissioner shall, in accordance with the provisions of section 11-4a of the general statutes, submit the following to the joint standing committee of the General Assembly having cognizance of matters relating to public safety and security: (1) An interim report that identifies the scope of the strategic plan and makes preliminary findings not later than February 1, 2019, and (2) the final strategic plan not later than July 1, 2019.

(d) The Commissioner of Consumer Protection and the board of directors of the Connecticut Lottery Corporation shall provide any information and data needed by the professional service provider to complete the strategic plan, provided the information and data does not disclose the identity of any individual.

Sec. 13. Subsection (b) of section 12-564 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) The commissioner shall conduct studies concerning the effect of legalized gambling on the citizens of this state including, but not limited to, studies to determine the types of gambling activity engaged in by the public and the desirability of expanding, maintaining or reducing the amount of legalized gambling permitted in this state. Such studies shall be conducted as often as the commissioner deems necessary, except that no studies shall be conducted before the fiscal year ending June 30, [2009] 2028, and thereafter studies shall be conducted at least once every ten years. The commissioner shall submit the findings of such studies and the costs of conducting such studies to the joint standing [committees] committee of the General Assembly having cognizance of matters relating to [legalized gambling shall each receive a report concerning each study carried out, stating the findings of the study and the costs of conducting the study] public safety and security, in accordance with the provisions of section 11-4a.

Sec. 14. Section 12-810 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The Freedom of Information Act, as defined in section 1-200, shall apply to all actions, meetings and records of the corporation, except (1) where otherwise limited by subsection (c) of this section as to new lottery games and serial numbers of unclaimed lottery tickets, [and] (2) with respect to financial, credit and proprietary information submitted by any person to the corporation in connection with any proposal to provide goods, services or professional advice to the corporation as provided in section 12-815, and (3) where otherwise limited by subsection (d) of this section as to information submitted by any person to the corporation regarding such person's participation in the corporation's sports wagering voluntary self-exclusion process established pursuant to subdivision (2) of subsection (d) of section 1 of this act or subdivision (1) of subsection (e) of section 1 of this act.

(b) The records of proceedings as provided in subsection (a) of section 12-805 shall be subject to disclosure pursuant to the provisions of subsection (a) of section 1-210.

(c) Any new lottery game and the procedures for such game, until the game is publicly announced by the corporation, and any serial number of an unclaimed lottery ticket shall not be deemed public records, as defined in section 1-200, and shall not be available to the public under the provisions of section 1-210. The president shall submit a fiscal note prepared by the corporation with respect to the procedures for a new lottery game to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue, bonding and public safety after approval of such game by the board.

(d) The name and any personally identifying information of a person who is participating or participated in the corporation's sports wagering voluntary self-exclusion process established pursuant to subdivision (2) of subsection (e) of section 1 of this act or subdivision (1) of subsection (e) of section 1 of this act shall not be deemed public records, as defined in section 1-200, and shall not be available to the public under the provisions of section 1-210. The president may disclose the name and any records of such person if such person claims a winning from placing a sports wager.

Sec. 15. Subdivision (1) of subsection (a) of section 12-578f of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(1) "Authorized games" means any game of chance, including, but not limited to, blackjack, poker, dice, money-wheels, roulette, baccarat, chuck-a-luck, pan game, over and under, horse race game, acey-deucy, beat the dealer, bouncing ball, video facsimile game and any other game of chance authorized by the Commissioner of Consumer Protection. "Authorized games" does not include sports wagering, as defined in subsection (a) of section 1 of this act;

Sec. 16. Subsection (b) of section 12-802 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

(b) (1) [The] On and after July 1, 2018, the corporation shall be governed by a board of [thirteen] eleven directors. The Governor, with the advice and consent of the General Assembly, shall appoint [five] three directors who have skill, knowledge and experience in the fields of management, finance or operations in the private sector. Each director appointed by the Governor shall serve at the pleasure of the Governor, but no longer than the term of office of the Governor or until the director's successor is appointed and qualified, whichever term is longer. The Governor shall fill any vacancy for the unexpired term of a director appointed by the Governor. Two directors shall be the State Treasurer and the Secretary of the Office of Policy and Management, both of whom shall serve ex officio and shall have all of the powers and privileges of a member of the board of directors. Each ex-officio director may designate his or her deputy or any member of his or her staff to represent him or her at meetings of the corporation with full power to act and vote on his or her behalf. [Each director appointed by the Governor shall serve at the pleasure of the Governor, but no longer than the term of office of the Governor or until the director's successor is appointed and qualified, whichever term is longer. The Governor shall fill any vacancy for the unexpired term of a director appointed by the Governor. The procedures of section 4-7 shall apply to the confirmation of the Governor's appointments by both houses of the General Assembly.]

(2) Six directors shall be appointed, with the advice and consent of the General Assembly, as follows: (A) One director who shall have expertise in the field of corporate law appointed by the president pro tempore of the Senate, (B) one director who shall have expertise in the field of accounting appointed by the majority leader of the Senate, (C) one director who shall have expertise in the field of corporate law appointed by the minority leader of the Senate, (D) one director who shall have expertise in the field of gaming compliance appointed by the speaker of the House of Representatives, (E) one director who shall have expertise in the field of gaming compliance appointed by the majority leader of the House of Representatives, and (F) one director who shall have expertise in the field of accounting appointed by the minority leader of the House of Representatives. Each director appointed by a member of the General Assembly shall serve in accordance with the provisions of section 4-1a. The appropriate legislative appointing authority shall fill any vacancy for the unexpired term of a director appointed by such authority.

(3) Any appointed director shall be eligible for reappointment. The Commissioner of Consumer Protection shall not serve as a director. Any director may be removed by order of the Superior Court upon application of the Attorney General for misfeasance, malfeasance or wilful neglect of duty. Such actions shall be tried to the court without a jury and shall be privileged in assignment for hearing. If the court, after hearing, finds there is clear and convincing evidence of such misfeasance, malfeasance or wilful neglect of duty it shall order the removal of such director. Any director so removed shall not be reappointed to the board.

Sec. 17. (Effective from passage) (a) For the fiscal year ending June 30, 2018, the Connecticut Lottery Corporation, created under section 12-802 of the general statutes, shall reduce its expenses for such fiscal year by one million seven thousand dollars from the amount of its expenses in the fiscal year ending June 30, 2017.

(b) Notwithstanding subdivision (10) of subsection (b) of section 12-806 of the general statutes, the corporation shall pay one million seven thousand dollars to the Office of Policy and Management which shall be disbursed to the Department of Consumer Protection for the initial costs incurred to regulate sports wagering as defined in subsection (a) of section 1 of this act and for the costs of the strategic plan conducted pursuant to section 12 of this act.

Sec. 18. Subsection (b) of section 12-578aa of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

(b) The provisions of this section shall not be effective unless the following conditions have been met:

(1) The Governor enters into [amendments to the Mashantucket Pequot procedures and to the Mashantucket Pequot memorandum of understanding with the Mashantucket Pequot Tribe and amendments to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut concerning the authorization of fantasy contests in the state] new tribal-state compacts with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut pursuant to the federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2710(d)(3) concerning the authorization of fantasy contests. Any such tribal-state compact shall: (i) Allow each tribe to offer fantasy contests on any casino gaming facility located on Indian lands, (ii) provide that the authorization of fantasy contests does not relieve each tribe from each tribe's obligation to contribute a percentage of the gross operating revenues of video facsimile games to the state as provided in the Mashantucket Pequot memorandum of understanding and the Mohegan memorandum of understanding, and (iii) provide that the authorization of fantasy contests in the state does not terminate the moratoria on the operation of video facsimile games by the tribes pursuant to section 15(a) of the Mashantucket Pequot procedures and section 15(a) of the Mohegan compact.

[(2) The amendments to the Mashantucket Pequot procedures and the Mohegan compact shall include a provision that the authorization of fantasy contests in the state does not terminate the moratorium against the operation of video facsimile games by the Mashantucket Pequot Tribe and Mohegan Tribe of Indians of Connecticut on each tribe's reservation.

(3) The amendments to each tribe's memorandum of understanding shall include a provision that the authorization of fantasy contests in the state does not relieve each tribe from each tribe's obligation to contribute a percentage of the gross operating revenues of video facsimile games to the state as provided in each tribe's memorandum of understanding.]

[(4)] (2) The [amendments to the Mashantucket Pequot procedures, the Mashantucket Pequot memorandum of understanding, the Mohegan compact and the Mohegan memorandum of understanding] new tribal-state compacts are approved or deemed approved by the Secretary of the United States Department of the Interior pursuant to the federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its implementing regulations. If such approval is overturned by a court in a final judgment, which is not appealable, the authorization provided under this section shall cease to be effective.

[(5)] (3) The [amendments to the Mashantucket Pequot procedures and to the Mohegan compact] new tribal-state compacts are approved by the General Assembly pursuant to section 3-6c.

[(6) The amendments to the Mashantucket Pequot memorandum of understanding and to the Mohegan memorandum of understanding are approved by the General Assembly pursuant to the process described in section 3-6c.]

Sec. 19. Section 12-565a of the 2018 supplement to the general statutes is repealed. (Effective from passage)"

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2018

New section

Sec. 2

from passage

New section

Sec. 3

from passage

12-577

Sec. 4

from passage

12-806(b)(15)

Sec. 5

July 1, 2018

New section

Sec. 6

July 1, 2018

21a-6

Sec. 7

July 1, 2018

12-812(c)

Sec. 8

from passage

53-278a(2)

Sec. 9

from passage

53-278a(4)

Sec. 10

from passage

12-561

Sec. 11

from passage

12-563a

Sec. 12

from passage

New section

Sec. 13

from passage

12-564(b)

Sec. 14

from passage

12-810

Sec. 15

from passage

12-578f(a)(1)

Sec. 16

July 1, 2018

12-802(b)

Sec. 17

from passage

New section

Sec. 18

July 1, 2018

12-578aa(b)

Sec. 19

from passage

Repealer section