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Minnesota Legislature

Office of the Revisor of Statutes

HF 522

as introduced - 88th Legislature (2013 - 2014) Posted on 02/14/2013 01:54pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/13/2013

Current Version - as introduced

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A bill for an act
relating to gambling; permitting wagering on the results of certain professional or
collegiate sports or athletic events;proposing coding for new law as Minnesota
Statutes, chapter 349C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [349C.01] DEFINITIONS.
new text end

new text begin (a) As used in this chapter, the following terms have the meanings given them.
new text end

new text begin (b) "Collegiate sport or athletic event" means a sport or athletic event offered or
sponsored by or played in connection with a public or private institution that offers
educational services beyond the secondary level.
new text end

new text begin (c) "Commissioner" means the commissioner of public safety.
new text end

new text begin (d) "Lottery" means the State Lottery created under chapter 349A.
new text end

new text begin (e) "Professional sport or athletic event" means an event at which two or more
persons participate in sports or athletic events and receive compensation in excess of
actual expenses for their participation in the event.
new text end

new text begin (f) "Prohibited sports event" means a collegiate sport or athletic event that takes
place in Minnesota or a sport or athletic event in which any Minnesota college team
participates regardless of where the event takes place.
new text end

new text begin (g) "Sports event" means a professional sport or athletic event or a collegiate sport
or athletic event, except a prohibited sports event.
new text end

new text begin (h) "Sports pool" means the business of accepting wagers on a sports event by a
system or method of wagering.
new text end

new text begin (i) "Sports wagering lounge" means an area where a sports pool is operated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 2.

new text begin [349C.02] SPORTS WAGERING.
new text end

new text begin Subdivision 1. new text end

new text begin Operation. new text end

new text begin Interested parties may operate a sports pool upon
the approval of the commissioner of public safety in accordance with this chapter and
applicable rules adopted under this chapter. The commissioner shall hear and decide
promptly and in a reasonable order all applications for a license to operate a sports pool,
shall have the general responsibility for the implementation of this chapter, and shall have
all other duties specified in this chapter with regard to the operation of a sports pool. The
license to operate a sports pool shall be in addition to any other license required to be issued.
No license to operate a sports pool shall be issued by the commissioner to an entity unless it
has established its financial stability, responsibility, good character, honesty, and integrity.
new text end

new text begin Subd. 2. new text end

new text begin State Lottery. new text end

new text begin The State Lottery may choose to independently operate
a sports pool or pools, and shall be granted licenses to do so by the commissioner. All
other licensees must have a joint operations agreement with the lottery, and must operate
under that joint agreement. Terms of the agreement are to be determined by the lottery.
The lottery shall be consulted by the commissioner on all rules adopted under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Renewal of license. new text end

new text begin No later than five years after the date of the issuance of
a license and every five years thereafter or within such lesser periods as the commissioner
may direct, a licensee shall submit to the commissioner documentation or information the
commissioner may by rule require, to demonstrate to the satisfaction of the commissioner
that the licensee continues to meet the requirements of law and rule.
new text end

new text begin Subd. 4. new text end

new text begin Lounges; requirements. new text end

new text begin A sports pool shall be operated in a sports
wagering lounge located at a site allowed by the commissioner, which may include a
racetrack. The lounge shall conform to all requirements concerning square footage, design,
equipment, security measures, and related matters that the commissioner prescribes by rule.
new text end

new text begin The operator of a sports pool shall establish or display the odds at which wagers
may be placed on sports events.
new text end

new text begin An operator shall accept wagers on sports events from persons physically present in
the sports wagering lounge. A person placing a wager shall be at least 21 years of age.
new text end

new text begin An operator shall not admit into the sports wagering lounge, or accept wagers from,
any person whose name appears on an exclusion list maintained by the commissioner or
on a self-exclusion list maintained by the commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Contract with entity. new text end

new text begin The holder of a license to operate a sports pool
may contract with an entity to conduct a sports pool according to the rules of the
commissioner. The entity shall obtain a license as a sports pool operator prior to the
execution of a contract, and the license shall be issued under the requirements adopted by
the commissioner and the lottery.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 3.

new text begin [349C.03] EMPLOYEES.
new text end

new text begin All employees who are working in the sports wagering lounge may be required
to be registered, if appropriate, in accordance with rules of the commissioner adopted
in consultation with the lottery.
new text end

new text begin Each operator of a sports pool shall designate one or more key employees who shall
be responsible for the operation of the sports pool. At least one such key employee shall
be on the premises whenever sports wagering is conducted.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 4.

new text begin [349C.04] AUTHORITY; RULES.
new text end

new text begin Except as otherwise provided by this chapter, the State Lottery and the commissioner
shall jointly have the authority to regulate sports pools and the conduct of sports wagering
under this chapter. No organization shall be authorized to operate a sports pool unless
it has produced information, documentation, and assurances concerning its financial
background and resources, including cash reserves, that are sufficient to demonstrate
that it has the financial stability, integrity, and responsibility to operate a sports pool.
In developing rules applicable to sports wagering, the commissioner shall examine the
rules implemented in other states where sports wagering is conducted and shall, as far as
practicable, adopt a similar regulatory framework. The commissioner, in consultation with
the State Lottery, shall adopt rules necessary to carry out this chapter including, but not
limited to, rules governing the:
new text end

new text begin (1) amount of cash reserves to be maintained by operators to cover winning wagers;
new text end

new text begin (2) acceptance of wagers on a series of sports events;
new text end

new text begin (3) maximum wagers that may be accepted by an operator from any one patron
on any one sports event;
new text end

new text begin (4) type of wagering tickets that may be used;
new text end

new text begin (5) method of issuing tickets;
new text end

new text begin (6) method of accounting to be used by operators;
new text end

new text begin (7) types of records that shall be kept;
new text end

new text begin (8) use of credit and checks by patrons;
new text end

new text begin (9) type of system for wagering;
new text end

new text begin (10) protections for a person placing a wager; and
new text end

new text begin (11) making of problem gambling resources available to gamblers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 5.

new text begin [349C.05] OPERATORS.
new text end

new text begin Each operator shall adopt comprehensive house rules governing sports wagering
transactions with its patrons. The rules shall specify the amounts to be paid on winning
wagers and the effect of schedule changes. The house rules, together with any other
information the commissioner deems appropriate, shall be conspicuously displayed in the
sports wagering lounge and included in the terms and conditions of the account wagering
system, and copies shall be made readily available to patrons.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 6.

new text begin [349C.06] JOINT OPERATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Lottery role in operations. new text end

new text begin The State Lottery must have a role in
the operation of any sports betting lounge, in a manner to be negotiated between the
lottery and the licensee. This role may be oversight and monitoring, joint operation,
or sole operation by the lottery.
new text end

new text begin Subd. 2. new text end

new text begin Joint agreements; revenues. new text end

new text begin When a licensee and the lottery enter into an
agreement to jointly establish a sports wagering lounge, and to operate and conduct sports
wagering under this chapter, the agreement shall specify the distribution of revenues from
the joint sports wagering operation among the parties to the agreement. The sums received
by the licensee from the joint sports wagering operation shall be considered gross revenue.
The sums actually received by the licensee from any sports wagering operation, either
jointly established with the lottery or established semi-independently or with nonlottery
partners, less only the total of all sums actually paid out as winnings to patrons, shall be
subject to an eight percent tax to be collected by the commissioner and paid to the State
Lottery fund.
new text end

new text begin A percentage of the fee paid for a license to operate a sports pool shall be deposited
into the state general fund for appropriation by the legislature to the Department of
Human Services to provide funds for prevention, education, and treatment programs for
compulsive gambling programs. The percentage shall be determined by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 7.

new text begin [349C.07] REVENUES.
new text end

new text begin "Gross revenue" means the total of all sums actually received by a licensee from
operation of a sports pool, less only the total of all sums actually paid out as winnings to
patrons; provided, however, that the cash equivalent value of any merchandise or thing of
value included in a jackpot or payout shall not be included in the total of all sums paid out
as winnings to patrons for purposes of determining gross revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 8.

new text begin [349C.08] INTERNET.
new text end

new text begin A licensee that has been issued a permit to conduct a sports pool shall not knowingly
make its premises available for placing wagers using the Internet or advertise that its
premises may be used for that purpose. A licensee that is determined by the commissioner
to have knowingly violated this section shall be subject to a penalty of $1,000 per player
per day for making its premises available for placing wagers using the Internet and of
$10,000 per violation for advertising that its premises may be used for that purpose.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end