[50 Pa.B. 7277]
[Saturday, December 26, 2020]
[Continued from previous Web Page]
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart Q. SPORTS WAGERING Chap.
1401a. GENERAL SPORTS WAGERING PROVISIONS 1402a. SPORTS WAGERING OPERATORS 1403a. SPORTS WAGERING MANUFACTURER 1404a. SPORTS WAGERING SUPPLIER 1405a. SPORTS WAGERING GAMING SERVICE PROVIDERS 1406a. SPORTS WAGERING PRINCIPALS AND KEY, GAMING AND NONGAMING EMPLOYEES 1407a. SPORTS WAGERING TESTING AND CONTROLS 1408a. SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS 1409a. SPORTS WAGERING ADVERTISEMENTS, PROMOTIONS AND TOURNAMENTS 1410a. SPORTS WAGERING COMPULSIVE AND PROBLEM GAMBLING REQUIREMENTS 1411a. SPORTS WAGERING SELF-EXCLUDED PERSONS
CHAPTER 1401a. GENERAL SPORTS
WAGERING PROVISIONSSec.
1401a.1. Scope. 1401a.2. Definitions. 1401a.3. Initial and renewal authorization and license fees. 1401a.4. Sports wagering certificate petition and standards. 1401a.5. Conduct of sports wagering generally. 1401a.6. Permitted sports wagering activities. 1401a.7. Prohibited and restricted sports wagering activities. 1401a.8. Persons prohibited from engaging in sports wagering activities. 1401a.9. Physical characteristics of sports wagering areas; security and surveillance of sports wagering area; other requirements. § 1401a.1. Scope.
(a) The purpose of this subpart is to govern the operation of sports wagering in this Commonwealth. The purpose of this chapter is to establish definitions for this subpart and create the process by which a slot machine licensee can seek approval to conduct sports wagering. The act and the Board's regulations promulgated thereunder shall otherwise apply when not in conflict with this subpart.
(b) Any sports wagering certificate holder or sports wagering operator acting on behalf of a sports wagering certificate holder who offers interactive or mobile sports wagering as a form of interactive gaming shall also comply with all applicable provisions in Subpart L (relating to interactive gaming) as it pertains to the development, implementation, and use of interactive or mobile sports wagering system operations.
§ 1401a.2. Definitions.
The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:
Associated equipment—Any equipment or mechanical, electromechanical or electronic contrivance, component or machine used in connection with sports wagering, including equipment which affects the proper reporting and counting of gross sports wagering revenue and computerized systems for controlling and monitoring sports wagering.
Authorized trader—An entity who has been authorized by a sports wagering certificate holder or sports wagering operator to place a layoff wager pursuant to a layoff wager agreement.
Cash equivalent—An asset that is readily convertible to cash, including any of the following:
(i) Chips or tokens.
(ii) Travelers checks.
(iii) Foreign currency and coin.
(iv) Certified checks, cashier's checks and money orders.
(v) Personal checks or drafts.
(vi) A negotiable instrument applied against credit extended by a certificate holder, an interactive gaming operator, sports wagering operator or a financial institution.
(vii) A prepaid access instrument.
(viii) Any other instrument or representation of value that the Board deems a cash equivalent.
Gaming day—The period of time from 6 a.m. to 5:59:59 a.m. the following calendar day, corresponding to the beginning and ending times of sports wagering activities for the purpose of accounting reports and determination of gross sports wagering revenue.
Gaming employee—An employee of any of the following who the Board determines, after a review of the work to be performed, requires a gaming employee permit for the protection of the integrity of sports wagering within this Commonwealth:
(i) A sports wagering certificate holder, interactive gaming operator or sports wagering operator.
(ii) A sports wagering manufacturer.
(iii) A sports wagering supplier.
(iv) A sports wagering gaming service provider.
(v) Any other person as determined by the Board.
Gross sports wagering revenue—
(i) The total of cash or cash equivalents received from sports wagering minus the total of:
(A) Cash or cash equivalents paid to players as a result of sports wagering.
(B) Cash or cash equivalents paid to purchase annuities to fund prizes payable to players over a period of time as a result of sports wagering.
(C) The actual cost paid by the sports wagering certificate holder for any personal property distributed to a player as a result of sports wagering. This clause does not include travel expenses, food, refreshments, lodging or services.
(ii) The term does not include any of the following:
(A) Counterfeit cash or chips.
(B) Coins or currency of other countries received as a result of sports wagering, except to the extent that the coins or currency are readily convertible to cash.
(C) Cash taken in a fraudulent act perpetrated against a sports wagering certificate holder for which the sports wagering certificate holder is not reimbursed.
Interactive or mobile sports wagering—Sports wagering offered to registered players in this Commonwealth by a sports wagering certificate holder or sports wagering operator by means of an authorized sports wagering web site or mobile application.
Key employee—All of the following:
(i) An individual who is employed in a director or department head capacity and who is empowered to make discretionary decisions that regulate sports wagering operations or systems, including the director of sports wagering or other similar job classifications associated with sports wagering.
(ii) An employee who is not otherwise designated as a gaming employee and who supervises the operations or systems of the sports wagering department or to whom the sports wagering department directors or sports wagering department heads report.
(iii) Other positions not otherwise designated or defined under this subpart which the Board determines based on detailed analyses of job descriptions as provided in the internal controls of the sports wagering certificate holder or sports wagering operator as approved by the Board.
Layoff wager—
(i) A wager placed by a sports wagering certificate holder or sports wagering operator acting on behalf of a sports wagering certificate holder with another sports wagering certificate holder or sports wagering operator located in this Commonwealth for the purposes of offsetting patron wagers.
(ii) A wager sought and accepted by a sports wagering certificate holder or sports wagering operator acting on behalf of a sports wagering certificate holder placed by an authorized trader for the purposes of offsetting patron wagers.
Layoff wager agreement—An agreement entered into between a sports wagering certificate holder or sports wagering operator acting on behalf of a sports wagering certificate holder and an authorized trader which governs the terms and conditions for the placement of layoff wagers.
Player—An individual wagering cash, a cash equivalent or other thing of value on a sporting event, combination of sporting events or the individual performance statistics of an athlete in a sporting event, including during a contest or tournament, the act of which may deliver or entitle the individual to receive cash, a cash equivalent or other thing of value from another player or sports wagering certificate holder, interactive gaming operator or sports wagering operator.
Registered player—An individual who has entered into a sports wagering account agreement with a sports wagering certificate holder or sports wagering operator offering interactive or mobile sports wagering.
Retail sportsbook—Sports wagering activities conducted by means of self-service kiosks or point of sale system in the sports wagering areas of a sports wagering certificate holder's approved locations.
Sporting event—A professional or collegiate sports or athletic event or a motor race event.
Sports wagering—
(i) The business of accepting wagers on sporting events or on the individual performance statistics of athletes in a sporting event or combination of sporting events by any system or method of wagering, including at a retail sportsbook or over the Internet through web sites and mobile applications when authorized by the Board. The term includes exchange wagering, parlays, over-under, moneyline, pools and straight bets. The term does not include the other forms of gaming or wagering listed in section 13C01 of the act (relating to definitions).
Sports wagering area—
(i) The physical land-based location at which a certificate holder is authorized, under sections 13C01—13C71 of the act (relating to sports wagering), to conduct retail sports wagering. The area must be:
(A) A designated area within the certificate holder's slot machine licensed facility, as approved by the Board.
(B) A Board-approved temporary facility that is physically connected to, attached to or adjacent to the certificate holder's slot machine licensed facility for a period not to exceed 18 months.
(C) A nonprimary location of a Category 1 slot machine licensee under 3 Pa.C.S. Chapter 93 (relating to race horse industry reform) upon Board approval in consultation with the State Horse Racing Commission.
(ii) The term does not include a redundancy facility or an interactive gaming or interactive or mobile sports wagering restricted area which is not located on the premises of a licensed facility as approved by the Board and which is maintained and operated by a certificate holder, interactive gaming operator or sports wagering operator in connection with sports wagering.
Sports wagering certificate—A certificate awarded by the Board under this subpart that authorizes a slot machine licensee to conduct sports wagering in accordance with this subpart.
Sports wagering certificate holder—A slot machine licensee to whom the Board has awarded a sports wagering certificate.
Sports wagering device—Any mechanical, electrical or computerized contrivance, terminal, machine or other device, apparatus, equipment or supplies approved by the Board and used to conduct sports wagering.
Sports wagering gaming service provider—A person that is not required to be licensed as a sports wagering operator, interactive gaming operator, sports wagering manufacturer, sports wagering supplier, interactive gaming manufacturer or interactive gaming supplier and:
(i) Provides goods or services to a sports wagering certificate holder, interactive gaming operator or sports wagering operator for the operation of sports wagering.
(ii) Is determined to be a sports wagering gaming service provider by the Board.
Sports wagering interactive system—All hardware, software and communications that comprise a type of server-based sports wagering system for the purpose of offering authorized interactive or mobile sports wagering in this Commonwealth when authorized by the Board.
Sports wagering manufacturer—A person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs, sells, leases, offers or otherwise makes modifications to any authorized sports wagering device or associated equipment for use or operation in this Commonwealth for sports wagering purposes.
Sports wagering manufacturer license—A license issued by the Board authorizing a sports wagering manufacturer to manufacture, build, rebuild, fabricate, assemble, produce, program, design, sell, lease, offer or otherwise make modifications to any authorized sports wagering device or associated equipment for use or operation in this Commonwealth for sports wagering purposes.
Sports wagering operator—A person licensed by the Board to offer sports wagering at a retail sportsbook or offer interactive or mobile sports wagering through the provision of a sports wagering platform on behalf of sports wagering certificate holder. The term includes an interactive gaming operator applicant or licensee that seeks to operate retail sports wagering or interactive or mobile sports wagering system on behalf of sports wagering certificate holder.
Sports wagering platform—The combination of hardware and software or other technology designed and used to manage, conduct and record retail and interactive or mobile sports wagering activity as approved by the Board. The term includes any emerging or new technology deployed to advance the conduct and operation of retail and interactive or mobile sports wagering activity as approved through regulation by the Board.
Sports wagering restricted area—Any room or area, as approved by the Board, used by a sports wagering certificate holder, interactive gaming operator or sports wagering operator to manage, control and operate sports wagering, including, when approved by the Board, redundancy facilities and remote gaming server locations.
Sports wagering supplier—A person who provides, distributes or services any authorized sports wagering device or associated equipment for use or operation in this Commonwealth for sports wagering purposes that is not otherwise required to be licensed as a sports wagering manufacturer or sports wagering gaming service provider.
Sports wagering supplier license—A license issued by the Board authorizing a sports wagering supplier to provide products or services related to any authorized sports wagering device or associated equipment to a sports wagering certificate petitioner or holder or sports wagering operator for use or operation in this Commonwealth for sports wagering purposes.
§ 1401a.3. Initial and renewal authorization and license fees.
(a) Prior to the Board issuing a sports wagering certificate, sports wagering operator license or renewal thereof, the sports wagering certificate holder or sports wagering operator shall pay the authorization or license fee.
(b) If an interactive gaming operator licensee, licensed in accordance with the provisions of Subpart L (relating to interactive gaming), has already remitted the required licensing fee, the Board will not assess an additional fee for the interactive gaming operator licensee to acquire a sports wagering operator license.
§ 1401a.4. Sports wagering certificate petition and standards.
(a) A slot machine licensee seeking to offer sports wagering in this Commonwealth may petition the Board for a sports wagering certificate.
(b) A petitioner for a sports wagering certificate shall submit all of the following to the Board:
(1) The name, business address and contact information of the slot machine licensee petitioning for a sports wagering certificate.
(2) The name, business address and contact information of any affiliate, sports wagering operator or other person that will be a party to an agreement with the sports wagering certificate petitioner related to the operation of sports wagering on behalf of the sports wagering certificate petitioner and a description of the services to be provided.
(3) The name and business address, job title and a photograph of each principal and key employee of the sports wagering petitioner who will be involved in the conduct of sports wagering and whether or not the principal or key employee is currently licensed by the Board.
(4) A statement identifying what types of sports wagering, including the sporting events, the sports wagering certificate petitioner intends to offer.
(5) A statement identifying whether the sports wagering petitioner intends to offer retail sports wagering, interactive or mobile sports wagering, or a combination thereof.
(6) A statement identifying whether the sports wagering petitioner intends to utilize a temporary facility for its retail sports wagering operations or system.
(7) If the petitioner is a Category 1 slot machine licensee, a statement identifying whether the sports wagering petitioner intends to offer retail sports wagering in any nonprimary locations.
(8) The estimated number of full-time and part-time employment positions that will be created as a result of sports wagering if a sports wagering certificate is issued.
(9) An updated hiring plan under section 1510(a) of the act (relating to labor hiring preferences) which outlines the sports wagering certificate petitioner's plan to promote the representation of diverse groups and Commonwealth residents in the employment positions.
(10) A brief description of the economic benefits expected to be realized by the Commonwealth if a sports wagering certificate is issued.
(11) The details of any financing obtained or that will be obtained to fund an expansion or modification of the sports wagering certificate petitioner's licensed facility to accommodate sports wagering and to otherwise fund the cost of commencing sports wagering.
(12) Information and documentation concerning financial background and resources to establish the financial stability, integrity and responsibility of the sports wagering certificate petitioner.
(13) Information and documentation concerning the terms of any agreement with a sports wagering operator.
(14) Information and documentation to establish that the sports wagering certificate petitioner has sufficient business ability and experience to conduct a successful sports wagering operation, including the sports wagering certificate petitioner's history in slot machine and table game operations, employment data and capital investment in casino operations.
(15) Information and documentation that the sports wagering certificate petitioner has or will have the financial ability to pay the sports wagering authorization fee.
(16) Detailed site plans identifying the proposed sports wagering area and sports wagering restricted area, including security and surveillance plans and plans relative to compliance with the Clean Indoor Air Act (35 P.S. §§ 637.1—637.11).
(17) An overview of all of the following:
(i) The sports wagering certificate petitioner's initial system of internal and accounting controls applicable to sports wagering including the areas described in paragraph (16).
(ii) The sports wagering certificate petitioner's proposed standards to protect, with a reasonable degree of certainty, the privacy and security of its registered players.
(iii) The sports wagering devices and associated equipment and interactive or mobile sports wagering system, or both, that the sports wagering certificate petitioner plans to or will utilize to manage, administer or control its sports wagering operations or systems as well as the identity of any third parties providing these devices and associated equipment.
(18) A description of accounting systems, including accounting systems for all of the following:
(i) Sports wagering accounts.
(ii) Per wager charges, if applicable.
(iii) Transparency and reporting to the Board and the Department.
(iv) Ongoing auditing and internal control compliance reviews.
(19) A description outlining the impact that sports wagering petitioner's plans will have on the number of slot machines and table games in operation at its licensed facility.
(20) An overview of any necessary additions to the petitioner's Compulsive and Problem Gambling Plan necessitated by sports wagering.
(c) The Board will approve a sports wagering petition if the petitioner establishes all of the following by clear and convincing evidence:
(1) The petitioner's slot machine license and table game operation certificate are in good standing with the Board.
(2) The conduct of sports wagering at the petitioner's licensed facility will increase revenues and employment opportunities.
(3) The petitioner possesses adequate funds or has secured adequate financing to:
(i) Fund any necessary expansion or modification of the petitioner's licensed facility to accommodate the conduct of sports wagering.
(ii) Pay the authorization fee in accordance with section 13C61 of the act (relating to sports wagering authorization fee).
(iii) Commence sports wagering operations or system at its licensed facility.
(4) The petitioner has the financial stability, integrity and responsibility to conduct sports wagering.
(5) The petitioner has sufficient business ability and experience to create and maintain a successful sports wagering operation.
(6) The petitioner's proposed internal and external security and proposed surveillance measures within the area of the licensed facility where the petitioner seeks to conduct sports wagering are adequate.
(7) The petitioner has satisfied the petition requirements.
§ 1401a.5. Conduct of sports wagering generally.
(a) Sports wagering may only be conducted in this Commonwealth by a sports wagering certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder. A sports wagering operator may be a licensed interactive gaming operator and provide interactive gaming and sports wagering services on behalf of certificate holders.
(b) Sports wagering conducted in this Commonwealth by a sports wagering certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder may only be offered to players as follows:
(1) At a designated, clearly identified sports wagering area, at the sports wagering certificate holder's licensed facility.
(2) At a temporary facility that is physically connected to, attached to or adjacent to the sports wagering certificate holder's slot machine licensed facility for a period not to exceed 18 months.
(3) At a nonprimary location of a Category 1 slot machine licensee under 3 Pa.C.S. Chapter 93 (relating to race horse industry reform).
(4) At a Category 4 licensed facility, if the holder of the Category 4 slot machine license also holds a Category 1, 2 or 3 slot machine license and has acquired a sports wagering certificate under that Category 1, 2 or 3 license.
(5) Through a single interactive sports wagering web site or mobile application that clearly and prominently displays the name of the sports wagering certificate holder.
(c) Sports wagering certificate holders may employ the services of a sports wagering operator to assist its sports wagering operations through any or all of the means identified in subsection (b).
(i) A sports wagering certificate holder may employ the services of two sports wagering operators only if one sports wagering operator provides services related to retail sports wagering and the other provides services related to interactive or mobile sports wagering.
(ii) A sports wagering certificate holder may only offer one sports wagering web site and one sports wagering mobile application.
(d) A sports wagering certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder may not offer sports wagering to players that are:
(1) Under 21 years of age.
(2) On the Board's sports wagering exclusion list.
(3) On the Board's casino self-exclusion list for retail sports wagering or the interactive gaming self-exclusion list for interactive or mobile sports wagering.
(e) A sports wagering certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder seeking to offer interactive or mobile sports wagering shall have a server or other equipment located in this Commonwealth that is capable of receiving sports wagering bets and that conforms with the requirements set forth by the Board in Subpart L (relating to interactive gaming).
(f) A sports wagering certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder seeking to offer interactive or mobile sports wagering shall utilize geolocation tools to ensure players placing sports wagering bets are located in this Commonwealth.
(g) As set forth in § 1408a.9 (relating to integrity monitoring), a sports wagering certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder shall employ the services of a third-party integrity monitor that is licensed by the Board to assist the sports wagering certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder in protecting against and identifying suspicious or illegal sports wagering activities, or otherwise demonstrate to the Board's satisfaction that it has established an in-house unit capable of performing this function with appropriate segregation of functions and reporting duties.
(h) As set forth in § 1408a.8 (relating to risk management), a sports wagering certificate holder or sports wagering operators on behalf of sports wagering certificate holders shall employ the services of a third-party risk manager that is licensed by the Board to assist the certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder to manage the risk and liabilities associated with operating a sportsbook, or otherwise demonstrate to the Board's satisfaction that it has established an in-house unit capable of performing this function with appropriate segregation of functions and reporting duties.
(i) A sports wagering certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder may not commence sports wagering operations through any of the means identified in subsection (b) to players in this Commonwealth until the Board approves all necessary associated applications, including applications of key employees, gaming employees, manufacturers, suppliers and gaming service providers.
(j) A sports wagering certificate holder or a sports wagering operator on behalf of a sports wagering certificate holder shall comply with all applicable Federal laws governing the conduct of sports wagering and interstate commerce.
§ 1401a.6. Permitted sports wagering activities.
(a) A sports wagering certificate holder or sports wagering operator on behalf of a sports wagering certificate holder shall submit to the Board for approval the events and types of wagers it proposes offering to players prior to accepting any sports wagering bets.
(b) The Board may permit a sports wagering certificate holder or sports wagering operator on behalf of a sports wagering certificate holder to offer wagering on any of the following sporting events:
(1) Professional athletic events.
(2) Collegiate athletic events.
(3) Professional motor race events.
(4) International team and international individual athletic events.
(5) Any other sporting events as approved by the Board.
(c) The Board may permit a sports wagering certificate holder or sports wagering operator on behalf of a sports wagering certificate holder to offer any of the following types of wagers on the sporting events or on the individual performance statistics of athletes in a sporting event enumerated in subsection (b):
(1) Exchange wagering—A marketplace which permits patrons to bet with or against each other through a gaming platform operated and managed by a sports wagering certificate holder or sports wagering operator.
(2) In-game wagers—Wagers placed on the outcome of an athletic event or proposition wagers made after the athletic event has started and can continue during the course of live play of the athletic event.
(3) Parlay wagers—A wager on two or more outcomes in which all outcome wagers must win or cover for the patron to win or, a series of three or more teams in 2-team parlays. For the patron to win, all of the teams must cover/win.
(4) Proposition wagering—Wagers placed on the occurrence or nonoccurrence of a specific outcome of events within a game not directly involving the game's final outcome.
(5) Straight wagers—A pre-game or pre-match wager on a single game or single event that will be determined by a point spread, money line or total score.
(6) Other types of wagers as approved by the Board.
(d) A sports wagering certificate holder or a sports wagering operator shall make available to patrons a clear explanation of all types of wagers permitted by the Board and events on which those wagers are permitted.
(e) A sports wagering certificate holder or sports wagering operator on behalf of a sports wagering certificate holder may place a layoff wager with another sports wagering certificate holder or sports wagering operator located in this Commonwealth for the purpose of offsetting patron wagers made under this subpart provided that the following occurs:
(1) The sports wagering certificate holder or sports wagering operator placing the layoff wager discloses its identity to the sports wagering certificate holder or sports wagering operator receiving the layoff wager.
(2) The receiving sports wagering certificate holder or sports wagering operator agrees to accept the layoff wager after receiving notification of the identity of the sports wagering certificate holder or sports wagering operator placing the layoff wager.
(f) A sports wagering certificate holder or sports wagering operator acting on behalf of a sports wagering certificate holder may seek and accept layoff wagers from an authorized trader pursuant to a layoff wager agreement submitted under subsection (f)(1)(B)(i) for the purposes of offsetting patron wagers.
(1) The sports wagering certificate holder or sports wagering operator seeking and accepting the layoff wagers has set forth in its internal controls under Chapter 1408a (relating to sports wagering accounting and internal controls) all of the following:
(A) Procedures for initiating a request for a layoff wager from an authorized trader.
(B) Procedures for entering a layoff wager agreement with an authorized trader.
(i) All layoff wager agreements entered into between a sports wagering certificate holder or sports wagering operator and an authorized trader must be provided to the Board with the internal controls submission.
(C) Procedures for recording a layoff wager.
(D) Procedures for auditing layoff wagers.
(2) An entity acting as an authorized trader pursuant to a layoff wager agreement must be licensed or certified by a regulatory oversight body in the area of banking, securities or insurance, and documentation of the licensure or certification shall be provided to the Board with the layoff wager agreement submitted under subsection (f)(1)(B)(i).
(3) A layoff wager placed by an authorized trader may be done in person at a sports wagering certificate holder or sports wagering operator's retail sportsbook or by way of an interactive or mobile sports wagering system.
(4) All layoff wagers placed by an authorized trader using a sports wagering certificate holder's or sports wagering operator's interactive or mobile sports wagering platform must be executed by means of the authorized trader's sports wagering account, and the individual placing the wager must be physically present in this Commonwealth.
§ 1401a.7. Prohibited and restricted sports wagering activities.
(a) The following sports wagering activity is prohibited:
(1) Wagering on high school sporting events governed by the Pennsylvania Interscholastic Athletic Association or a similar governing body.
(2) Wagering on amateur sporting events that have not otherwise been specifically approved by the Board.
(3) Wagering on the account of or on behalf of any other person, or any other form of proxy wagering.
(4) Any other sports wagering activity as prohibited by the Board.
(b) A sports wagering certificate holder or sports wagering operator is prohibited from:
(1) Knowingly accepting wagers from athletes on sporting events of the type in which the athlete participates as well as sporting events governed by the same governing body under which the athlete competes.
(2) Knowingly accepting wagers from a person who holds a position of authority or influence sufficient to exert influence over the participants in a sporting event, or a person professionally connected to a sporting event or governing body including referees, officials, coaches, managers, handlers, athletic trainers or a person with access to certain types of exclusive information on any sporting event overseen by the governing body.
(3) Knowingly accepting wagers from a person the certificate holder or operator has reason to believe or suspect is placing the wager on behalf of or for the benefit of another individual that is prohibited from participating in sports wagering under these regulations or other applicable State or Federal law.
(4) Knowingly accepting wagers from a person the sports wagering certificate holder or sports wagering operator has reason to believe or suspect is attempting to place multiple wagers or structure wagers in any manner that is an attempt to evade or circumvent these regulations or other applicable State or Federal law.
(5) Knowingly accepting or holding cash or cash equivalents with the understanding that the money will be used to place a wager upon the occurrence of a specified future contingency unless a sports wagering ticket/voucher detailing the wager is immediately issued upon the sports wagering certificate holder's and sports wagering operator's acceptance of the money.
(6) Knowingly accepting any wagers other than those permitted by the Board.
(7) Knowingly accepting wagers on events and odds other than those posted or otherwise available to the public by the sports wagering certificate holder or sports wagering operator.
(8) Knowingly accepting a wager from or making payment to a person acting behalf of any other person, or any other form of proxy wagering.
(9) Knowingly allowing a person to make a wager utilizing the account of another person.
(c) An athlete or person who holds a position of authority or influence sufficient to exert influence over the participants in a sporting event, or a person professionally connected to a sporting event or governing body including coaches, managers, handlers, athletic trainers, team physicians or other physicians providing medical consultation or treatment of an athletic participant or a person with access to certain types of exclusive information on any sporting event overseen by the governing body is prohibited from having a 10% or more direct or indirect ownership interest in or control of a sports wagering certificate holder or a sports wagering operator.
(d) Sports wagering certificate holders and sports wagering operators are prohibited from having a 10% or more direct or indirect ownership interest in or control of an athletic team, organization or governing body of an athletic team or organization upon which the sports wagering certificate holder or sports wagering operator accepts wagers.
§ 1401a.8. Persons prohibited from engaging in sports wagering activities.
(a) No person under 21 years of age of may engage in sports wagering with a sports wagering certificate holder or sports wagering operator.
(b) No collegiate, amateur or professional athlete, referee, official, coach, manager, handler or athletic trainer or employee or contractor of a team or athletic organization who has access to nonpublic or exclusive information concerning an athlete or team may engage in sports wagering on a sporting event or the performance of an individual in a sporting event in which the person or team is participating.
(c) No collegiate, amateur or professional athlete, referee, official, coach, manager, handler, athletic trainer or employee of a team or athletic organization who has access to nonpublic or exclusive information concerning an athlete or team may engage in sports wagering on a sporting event or the performance of an individual in sporting events in the sport or league in which the person is involved.
(d) No person identified in subsections (a)—(c) may collect any winnings or recoup any losses from a sports wagering certificate holder or sports wagering operator as a result of engaging in sports wagering in violation of this section.
(e) Winnings of a person prohibited from engaging in sports wagering under this section shall be confiscated and retained by the sports wagering certificate holder or sports wagering operator and shall properly be accounted for in all necessary reports.
(f) An athletic team or the governing body or league of an athletic team may provide to the Board a list of all persons within the team's organization as well as all league officials or referees prohibited from engaging in sports wagering under this section, along with the specific type of sporting events from which the person is prohibited from participating in sports wagering activities. The Board shall provide that list of persons identified by the athletic team or governing body or league to sports wagering certificate holders and sports wagering operators to facilitate these prohibitions on sports wagering activities.
§ 1401a.9. Physical characteristics of sports wagering areas; security and surveillance of sports wagering area; other requirements.
(a) A sports wagering certificate holder or sports wagering operator acting on behalf of a sports wagering certificate holder shall establish a physical, land-based retail sportsbook in one of the locations set forth in § 1401a.5(b)(1)—(4) (relating to conduct of sports wagering generally).
(b) A sports wagering area shall be a single area of dedicated public space with clearly established walls or defined borders. Satellite sports wagering areas shall also be permitted upon approval by the Board.
(c) A sports wagering area shall include a restricted sports wagering area for conducting sports wagering transactions that:
(1) Shall be designed and constructed to provide maximum security for the materials stored and the activities performed therein, with the design and construction approved by the Board.
(2) Includes one or more ticket writer windows, each of which shall contain:
(i) A writer's drawer and terminal through which financial transactions related to sports wagering will be conducted. Writers shall not commingle funds with other sources and shall not transfer funds directly with another writer.
(ii) A permanently affixed number, which shall be visible to surveillance.
(iii) Windows, as approved by the Board, which shall be fully enclosed and designed to prevent direct access to the materials stored and activities performed therein.
(iv) Manually triggered silent alarms, which shall be connected directly to surveillance and security.
(v) Surveillance coverage capable of accurate visual monitoring and recording of any activities, including the capturing of a patron's facial image when conducting transactions at the counter.
(vi) An alarm for each exit door that is not a mantrap.
(vii) A secure location, such as a vault, for the purpose of storing funds issued by the cage to be used in the operation of sports wagering. The secure location shall:
(A) Be located in an area not open to the public.
(B) Have surveillance cameras capable of accurate visual monitoring and recording of any activities in the area.
(c) A sports wagering area shall have an operating balance of no more than $1 million.
(1) Whenever a retail sportsbook accumulates funds in excess of $1 million, the excess funds shall be transferred to the cage no later than at the end of each shift.
(2) The funds shall be transferred with appropriate licensed employee and container shall be accompanied by a security officer.
(3) Prior to transporting the funds, security shall notify the surveillance department that the transfer will take place.
(d) A sports wagering area may have slot machines or other authorized games with the approval of the Board, unless the sports wagering area is in a nonprimary location of a Category 1 slot machine licensee.
(e) A sports wagering certificate holder or sports wagering operator shall include signage in the sports wagering area that displays ''If you or someone you know has a gambling problem, call 1-800-GAMBLER,'' or comparable language approved by the Board, including in print advertisements or other media advertising the sports wagering operations of the sports wagering certificate holder or sports wagering operator.
CHAPTER 1402a. SPORTS WAGERING OPERATORS Sec.
1402a.1. Sports wagering operator requirements. 1402a.2. Sports wagering operator application and standards. 1402a.3. Sports wagering operator license term and renewal. 1402a.4. Sports wagering operator change of control. § 1402a.1. Sports wagering operator requirements.
A person seeking to operate sports wagering on behalf of a sports wagering certificate holder in this Commonwealth may apply with the Board for a sports wagering operator license.
§ 1402a.2. Sports wagering operator application and standards.
(a) An applicant for a sports wagering operator license shall submit all of the following:
(1) An original and one copy of the Entity Enterprise Application and Disclosure Information Form unless otherwise directed by the Board.
(2) The nonrefundable application fee posted on the Board's web site.
(3) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481a (relating to diversity).
(4) An application from every principal under Chapter 433a (relating to principal licenses) and § 1406a.2 (relating to sports wagering principals) and key employee under Chapter 435a (relating to key, gaming and nongaming employees; Board-issued credentials) and § 1406a.3 (relating to sports wagering key employees) as specified by the Enterprise Application and Disclosure Information Form.
(b) In determining whether an applicant is suitable to be licensed as a sports wagering operator under this section, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the sports wagering operator license applicant.
(2) If all principals of the sports wagering operator license applicant are eligible and suitable under the standards of section 1311.1 of the act (relating to licensing of principals).
(3) The integrity of all financial backers.
(4) The suitability of the sports wagering operator license applicant and the principals of the sports wagering operator license applicant based on the satisfactory results of all of the following:
(i) The background investigation of the principals.
(ii) A current tax clearance review performed by the Department.
(iii) A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.
§ 1402a.3. Sports wagering operator license term and renewal.
(a) A sports wagering operator license and the renewal thereof is valid for 5 years from the date of approval of the application by the Board.
(b) A renewal application for a sports wagering operator license shall be filed at least 6 months prior to the expiration of the current license.
(c) A sports wagering operator license for which a completed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board.
§ 1402a.4. Sports wagering operator change of control.
(a) For purposes of this section, a change of control of a sports wagering operator will be deemed to have occurred when a person or group of persons acquires:
(1) More than 20% of a sports wagering operator's securities, assets or other ownership interests.
(2) More than 20% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the sports wagering operator.
(3) Any other interest in a sports wagering operator which allows the acquirer to control the sports wagering operator.
(b) A sports wagering operator shall notify the Bureau and the Bureau of Licensing in a form or manner prescribed by the Bureau of Licensing immediately upon becoming aware of any proposed or contemplated change of control of the sports wagering operator.
(c) Prior to acquiring a controlling interest in a sports wagering operator, the acquirer shall file a petition in accordance with § 493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:
(1) A copy of all documents governing the acquisition.
(2) Completed applications for the acquiring company, as required under § 1402a.2 (relating to sports wagering operator application and standards) and an application from every principal under Chapter 433a (relating to principal licenses) and § 1406a.2 (relating to sports wagering principals) and any identified key employee under Chapter 435a (relating to key, gaming and nongaming employees; Board-issued credentials) and § 1406a.3 (relating to sports wagering key employees) as specified by the Enterprise Entity Application and Disclosure Information Form and other persons as determined by the Board.
(d) A person or group of persons seeking to acquire a controlling interest in a sports wagering operator shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under subsection (c).
(e) A person or group of persons may not acquire a controlling interest in a sports wagering operator until the petition required under subsection (c) has been approved. A person or group of persons seeking to acquire a controlling interest in a sports wagering operator and the sports wagering operator may enter into an agreement of sale that is contingent on Board approval of the petition.
(f) The requirements in this section do not apply to the acquisition of a controlling interest in a sports wagering operator when all of the following conditions are met:
(1) The acquirer is an existing licensed slot machine licensee, table game certificate holder, interactive gaming operator or sports wagering operator.
(2) The existing licensed slot machine licensee, table game certificate holder, interactive gaming operator or sports wagering operator has provided the Bureau and the Bureau of Licensing notification and a copy of all documents governing the acquisition at least 60 days prior to the acquisition.
(3) After reviewing the documentation, the Bureau and the Bureau of Licensing determine that the filing of a petition is not required.
CHAPTER 1403a. SPORTS WAGERING MANUFACTURER Sec.
1403a.1. Sports wagering manufacturer license requirements. 1403a.2. Sports wagering manufacturer license application and standards. 1403a.3. Sports wagering manufacturer license term and renewal. 1403a.4. Sports wagering manufacturer abbreviated license process. 1403a.5. Sports wagering manufacturer licensee responsibilities. 1403a.6. Sports wagering manufacturer licensee change of control. § 1403a.1. Sports wagering manufacturer license requirements.
(a) A person seeking to manufacture, build, rebuild, fabricate, assemble, produce, program, design, sell, lease, offer or otherwise make modifications to any authorized sports wagering device or associated equipment for use or operation in this Commonwealth for sports wagering purposes shall apply to the Board for a sports wagering manufacturer license.
(b) In accordance with section 1317.1(e)(3) of the act (relating to manufacturer licenses), an applicant for or the holder of a sports wagering manufacturer license or any of the applicant's or holder's affiliates, intermediaries, subsidiaries or holding companies may not apply for or hold a slot machine license or sports wagering supplier license.
§ 1403a.2. Sports wagering manufacturer license application and standards.
(a) An applicant for a sports wagering manufacturer license shall submit all of the following:
(1) An original and one copy of the Enterprise Entity Application and Disclosure Information Form for the applicant and each of the applicant's principal affiliates unless otherwise directed by the Board.
(2) The nonrefundable application fee posted on the Board's web site.
(3) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481a (relating to diversity).
(4) An application from every principal under Chapter 433a (relating to principal licenses) and § 1406a.2 (relating to sports wagering gaming principals) and key employee under Chapter 435a (relating to key, gaming and nongaming employees; Board-issued credentials) and § 1406a.3 (relating to sports wagering key employees) as specified by the Enterprise Entity Application and Disclosure Information Form and other persons as determined by the Board.
(5) An affirmation that neither the sports wagering manufacturer license applicant nor any of its affiliates, intermediaries, subsidiaries or holding companies is an applicant for or holder of a slot machine license and that the sports wagering manufacturer license applicant has neither applied for nor holds a sports wagering supplier license.
(b) In addition to the materials required under subsection (a), an applicant for a sports wagering manufacturer license shall do all of the following:
(1) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(2) Demonstrate that the sports wagering manufacturer license applicant has the ability to manufacture, build, rebuild, repair, fabricate, assemble, produce, program, design or otherwise make modifications to authorized sports wagering devices or associated equipment which meet one or more of the following criteria:
(i) Are specifically designed for use in the operation of sports wagering or a sports wagering device or associated equipment.
(ii) Are needed to conduct authorized sports wagering.
(iii) Have the capacity to determine the outcome of the sports wagering activity.
(iv) Have the capacity to affect the calculation, storage, collection or control of gross sports wagering gaming revenue.
(c) In determining whether an applicant is suitable to be licensed as a sports wagering manufacturer under this section, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the sports wagering manufacturer license applicant.
(2) If all principals of the sports wagering manufacturer license applicant are eligible and suitable under the standards of section 1311.1 of the act (relating to licensing of principals).
(3) The integrity of all financial backers.
(4) The suitability of the sports wagering manufacturer license applicant and the principals of the sports wagering manufacturer license applicant based on the satisfactory results of all of the following:
(i) The background investigation of the principals.
(ii) A current tax clearance review performed by the Department.
(iii) A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.
§ 1403a.3. Sports wagering manufacturer license term and renewal.
(a) A sports wagering manufacturer license and the renewal thereof is valid for 5 years from the date of approval of the application by the Board.
(b) A renewal application for a sports wagering manufacturer license shall be filed at least 6 months prior to the expiration of the current license.
(c) A sports wagering manufacturer license for which a completed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board.
§ 1403a.4. Sports wagering manufacturer abbreviated license process.
(a) The Board may use an abbreviated licensing process if the sports wagering manufacturer license applicant holds a license issued by the Board to manufacture slot machines, table games, table game devices, interactive games, video gaming terminals or associated equipment and all of the following shall apply:
(1) The license was issued by the Board and is currently in good standing.
(2) The entity to whom the manufacturer license was issued affirms there has been no material change in circumstances relating to the licensee.
(3) The Board determines, in its sole discretion, that there has been no material change in circumstances relating to the licensee that necessitates that the abbreviated process not be used.
(b) This section may not be construed to waive any fees associated with obtaining a sports wagering manufacturer license through the application process in this Commonwealth.
§ 1403a.5. Sports wagering manufacturer licensee responsibilities.
(a) A holder of a sports wagering manufacturer license has a continuing duty to do all of the following:
(1) Comply with the general requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(2) For publicly traded sports wagering manufacturer licensees, provide notification of all SEC filings or, if the sports wagering manufacturer licensee is publicly traded on a foreign exchange, a copy of all filings submitted to the securities regulator that has jurisdiction over the foreign publicly traded corporation. The notification or copies of the filings shall be submitted to the Bureau of Licensing within 30 days after the date of filing with the SEC or securities regulator that has jurisdiction over the foreign publicly traded corporation.
(b) An employee of a licensed sports wagering manufacturer who is a gaming or nongaming employee as defined in §§ 401a.3 and 1401a.2 (relating to definitions) shall obtain a permit under §§ 435a.3 and 1406a.4 (relating to occupation permit; and sports wagering gaming employees) or registration under §§ 435a.5 and 1406a.5 (relating to nongaming employee registration; and sports wagering nongaming employees).
§ 1403a.6. Sports wagering manufacturer licensee change of control.
(a) For purposes of this section, a change of control of a sports wagering manufacturer licensee will be deemed to have occurred when a person or group of persons acquires:
(1) More than 20% of a sports wagering manufacturer licensee's securities, assets or other ownership interests.
(2) More than 20% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the sports wagering manufacturer licensee.
(3) Any other interest in a sports wagering manufacturer licensee which allows the acquirer to control the sports wagering manufacturer licensee.
(b) A sports wagering manufacturer licensee shall notify the Bureau and the Bureau of Licensing in a form or manner prescribed by the Bureau of Licensing immediately upon becoming aware of any proposed or contemplated change of control of the sports wagering manufacturer licensee.
(c) Prior to acquiring a controlling interest in a sports wagering manufacturer licensee, the acquirer shall file a petition in accordance with § 493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:
(1) A copy of all documents governing the acquisition.
(2) Completed applications for the acquiring company, as required under this chapter and an application from every principal under Chapter 433a (relating to principal licenses) and § 1406a.2 (relating to sports wagering principals) and any identified key employee under Chapter 435a (relating to key, gaming and nongaming employees; Board-issued credentials) and § 1406a.3 (relating to sports wagering key employees) as specified by the Enterprise Entity Application and Disclosure Information Form and other persons as determined by the Board.
(3) An affirmation that neither the acquirer nor any of its affiliates, intermediaries, subsidiaries or holding companies is a slot machine licensee or sports wagering certificate holder and that the acquirer has neither applied for nor holds a sports wagering supplier license.
(d) A person or group of persons seeking to acquire a controlling interest in a sports wagering manufacturer licensee shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under subsection (c).
(e) A person or group of persons may not acquire a controlling interest in a sports wagering manufacturer licensee until the petition required under subsection (c) has been approved. A person or group of persons seeking to acquire a controlling interest in a sports wagering manufacturer licensee and the sports wagering manufacturer licensee may enter into an agreement of sale that is contingent on Board approval of the petition.
(f) The requirements of this section do not apply to the acquisition of a controlling interest in a sports wagering manufacturer licensee when all of the following conditions are met:
(1) The acquirer is an existing licensed slot machine, table game, interactive gaming, sports wagering or video gaming terminal manufacturer.
(2) The existing licensed sports wagering manufacturer has provided the Bureau and the Bureau of Licensing notification and a copy of all documents governing the acquisition at least 60 days prior to the acquisition.
(3) After reviewing the documentation, the Bureau and the Bureau of Licensing determine that the filing of a petition is not required.
CHAPTER 1404a. SPORTS WAGERING SUPPLIER Sec.
1404a.1. Sports wagering supplier license requirements. 1404a.2. Sports wagering supplier application and standards. 1404a.3. Sports wagering supplier license term and renewal. 1404a.4. Sports wagering supplier abbreviated license process. 1404a.5. Sports wagering supplier licensee responsibilities. 1404a.6. Sports wagering supplier change of control. § 1404a.1. Sports wagering supplier license requirements.
(a) A person seeking to sell, lease, offer or otherwise provide, distribute or service sports wagering devices or associated equipment to a sports wagering certificate holder or sports wagering operator in this Commonwealth shall apply to the Board for a sports wagering supplier license.
(b) In accordance with sections 1317 and 1317.1 of the act (relating to supplier licenses; and manufacturer licenses), an applicant for or the holder of a sports wagering supplier license or any of the sports wagering supplier applicant's or licensee's affiliates, intermediaries, subsidiaries or holding companies may not apply for or hold a slot machine license or a sports wagering manufacturer license.
§ 1404a.2. Sports wagering supplier application and standards.
(a) An applicant for a sports wagering supplier license shall submit all of the following:
(1) An original and one copy of the Enterprise Entity Application and Disclosure Information Form for the sports wagering supplier applicant and each of the sports wagering supplier applicant's principal affiliates unless otherwise directed by the Board.
(2) The nonrefundable application fee posted on the Board's web site.
(3) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481a (relating to diversity).
(4) An application from every principal under Chapter 433a (relating to principal licenses) and § 1406a.2 (relating to sports wagering principals) and key employee under Chapter 435a (relating to key, gaming and nongaming employees; Board-issued credentials) and § 1406a.3 (relating to sports wagering key employees) as specified by the Enterprise Entity Application and Disclosure Information Form and other persons as determined by the Board.
(5) An affirmation that neither the sports wagering supplier license applicant nor any of its affiliates, intermediaries, subsidiaries or holding companies is an applicant for or holder of a slot machine license and that the sports wagering supplier license applicant has neither applied for nor holds a sports wagering manufacturer license.
(b) In addition to the materials required under subsection (a), an applicant for a sports wagering supplier license shall comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(c) In determining whether a sports wagering supplier license applicant is suitable to be licensed as a sports wagering supplier under this section, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the sports wagering supplier license applicant.
(2) If all principals of the sport wagering supplier license applicant are eligible and suitable under the standards of section 1311.1 of the act (relating to licensing of principals).
(3) The integrity of all financial backers.
(4) The suitability of the sport wagering supplier license applicant and the principals of the applicant based on the satisfactory results of all of the following:
(i) The background investigation of the principals.
(ii) A current tax clearance review performed by the Department.
(iii) A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.
§ 1404a.3. Sports wagering supplier license term and renewal.
(a) A sports wagering supplier license and the renewal thereof is valid for 5 years from the date of approval of the application by the Board.
(b) A renewal application for a sports wagering supplier license shall be filed at least 6 months prior to the expiration of the current license.
(c) A sports wagering supplier license for which a completed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board.
§ 1404a.4. Sports wagering supplier abbreviated license process.
(a) The Board may use an abbreviated licensing process if the sports wagering supplier license applicant holds a license issued by the Board to supply slot machines, table games, table game devices, interactive gaming devices, video gaming terminal or associated equipment and all of the following apply:
(1) The license was issued by the Board and is currently in good standing.
(2) The entity to whom the supplier license was issued affirms there has been no material change in circumstances relating to the license.
(3) The Board determines, in its sole discretion, that there has been no material change in circumstances relating to the licensee applying for the sports wagering supplier license that necessitates that the abbreviated process not be used.
(b) This section may not be construed to waive any fees associated with obtaining a sports wagering supplier license through the application process in this Commonwealth.
§ 1404a.5. Sports wagering supplier licensee responsibilities.
(a) A holder of a sports wagering supplier license has a continuing duty to do all of the following:
(1) Comply with the general requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(2) For publicly traded sports wagering supplier licensees, provide notification of all SEC filings or, if the sports wagering supplier licensee is publicly traded on a foreign exchange, a copy of all filings submitted to the securities regulator that has jurisdiction over the foreign publicly traded corporation. The notification or copies of the filings shall be submitted to the Bureau of Licensing within 30 days after the date of filing with the SEC or securities regulator that has jurisdiction over the foreign publicly traded corporation.
(b) An employee of a licensed sports wagering supplier who is a gaming or nongaming employee as defined in §§ 401a.3 and 1401a.2 (relating to definitions) shall obtain a permit under §§ 435a.3 and 1406a.4 (relating to occupation permit; and sports wagering gaming employees) or registration under §§ 435a.5 and 1406a.5 (relating to nongaming employee registration; and sports wagering nongaming employees).
§ 1404a.7. Sports wagering supplier change of control.
(a) For purposes of this section, a change of control of a sports wagering supplier licensee will be deemed to have occurred when a person or group of persons acquires:
(1) More than 20% of a sports wagering supplier licensee's securities, assets or other ownership interests.
(2) More than 20% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the sports wagering supplier licensee.
(3) Any other interest in a sports wagering supplier licensee which allows the acquirer to control a sports wagering supplier licensee.
(b) A sports wagering supplier licensee shall notify the Bureau and the Bureau of Licensing in a form or manner prescribed by the Bureau of Licensing immediately upon becoming aware of any proposed or contemplated change of control of the sports wagering supplier licensee.
(c) Prior to acquiring a controlling interest in a sports wagering supplier licensee, the acquirer shall file a petition in accordance with § 493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:
(1) A copy of all documents governing the acquisition.
(2) Completed applications for the acquiring company, as required under this chapter and an application from every principal under Chapter 433a (relating to principal licenses) and § 1406a.2 (relating to sports wagering principals) and any identified key employee under Chapter 435a (relating to key, gaming and nongaming employees; Board-issued credentials) and § 1406a.3 (relating to sports wagering key employees) as specified by the Enterprise Entity Application and Disclosure Information Form and other persons as determined by the Board.
(3) An affirmation that neither the acquirer nor any of its affiliates, intermediaries, subsidiaries or holding companies is a slot machine licensee or sports wagering certificate petitioner or holder and that the acquirer has neither applied for nor holds a sports wagering manufacturer license.
(d) A person or group of persons seeking to acquire a controlling interest in a sports wagering supplier licensee shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under subsection (c).
(e) A person or group of persons may not acquire a controlling interest in a sports wagering supplier licensee until the petition, required under subsection (c), has been approved. A person or group of persons seeking to acquire a controlling interest in a sports wagering supplier licensee and the sports wagering supplier licensee may enter into a sales agreement that is contingent on Board approval of the petition.
(f) The requirements of this section do not apply to the acquisition of a controlling interest in a sports wagering supplier licensee when all of the following conditions are met:
(1) The acquirer is an existing licensed slot machine, table game, interactive gaming, sports wagering or video gaming terminal supplier.
(2) The existing licensed sports wagering supplier has provided the Bureau and the Bureau of Licensing notification and a copy of all documents governing the acquisition at least 60 days prior to the acquisition.
(3) After reviewing the documentation, the Bureau and the Bureau of Licensing determine that the filing of a petition is not required.
CHAPTER 1405a. SPORTS WAGERING GAMING SERVICE PROVIDERS Sec.
1405a.1. General sports wagering gaming service provider requirements. 1405a.2. Sports wagering gaming service provider certification applications. 1405a.3. Sports wagering gaming service provider registration applications. 1405a.4. Qualification of individuals and entities of certified sports wagering gaming service providers. 1405a.5. Sports wagering gaming service provider registration and certification term and renewal. 1405a.6. Authorized sports wagering gaming service providers list; prohibited sports wagering gaming service providers. 1405a.7. Permission to conduct business prior to certification or registration. 1405a.8. Emergency sports wagering gaming service provider. 1405a.9. Duty to investigate. § 1405a.1. General sports wagering gaming service provider requirements.
(a) Except as provided in § 1405a.8 (relating to emergency sports wagering service provider), a person seeking to conduct business with a sports wagering certificate holder or sport wagering operator shall apply to the Board for certification, unless explicitly exempted by the Board, if the person does any of the following:
(1) Meets the definition of a certified gaming service provider under §§ 437a.1 and 1401a.2 (relating to general gaming service provider requirements; and definitions).
(2) Meets the definition of a certified interactive gaming service provider under § 807a.1 (relating to general interactive gaming service provider requirements).
(3) Provides odds or raw data to sports wagering certificate holders or sports wagering operators that is used to conduct sports wagering in this Commonwealth.
(i) An athletic team, organization or governing body of an athletic team or organization who partners with or otherwise contracts with a sports wagering certificate holder or sports wagering operator to provide raw data that is used to conduct sports wagering shall not be required to be a certified sports wagering gaming service provider.
(ii) A sports wagering certificate holder or sports wagering operator who partners with or otherwise contracts with an athletic team, organization or governing body of an athletic team or organization under subparagraph (i) shall file a Notification with the Board in a manner prescribed by the Bureau of Licensing.
(4) Provides risk management services or integrity monitoring services to sports wagering certificate holders or sports wagering operators.
(5) Any other person as determined by the Board.
(b) Except as provided in § 1405a.8, a person seeking to conduct business with a sports wagering certificate holder or sport wagering gaming operator shall apply to the Board for a registration if the person is providing goods or services related to sports wagering and the person is not required to be certified as a sports wagering gaming service provider. This subsection applies to all of the following:
(1) Persons who meet the definition of a registered gaming service provider under §§ 437a.1 and 1401a.2.
(2) Persons who meet the definition of a registered interactive gaming service provider under § 807a.1.
(3) Any other person as determined by the Board.
(c) A holder of a gaming service provider registration or certification or the holder of an interactive gaming service provider registration or certification seeking to provide the same or similar services to a sports wagering certificate holder or sports wagering operator will not be required to file a new application for registration or certification and will not be required to submit additional licensing fees.
(d) A holder of a sports wagering gaming service provider certification, registration or authorization has a continuing duty to comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
§ 1405a.2. Sports wagering gaming service provider certification applications.
(a) A person seeking a sports wagering gaming service provider certification, not otherwise excluded under § 1405a.1(c) (relating to general sports wagering gaming service provider requirements), shall submit a Certification Application and Disclosure Form unless otherwise directed by the Bureau of Licensing. The original, copy and the application fee toward the cost of the investigation of the sports wagering gaming service provider applicant, as posted on the Board's web site, shall be submitted to the Bureau of Licensing by the sports wagering gaming service provider applicant unless otherwise directed by the Bureau of Licensing.
(b) In addition to the requirements of subsection (a), an applicant for a sports wagering gaming service provider certification shall do all of the following:
(1) Submit applications and release authorizations for each individual required to be qualified under § 1405a.4 (relating to qualification of individuals and entities of certified sports wagering gaming service providers).
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(c) An applicant for a sports wagering gaming service provider certification shall reimburse the Board for costs incurred in conducting the investigation of the applicant.
(d) A sports wagering gaming service provider certification will not be issued until all fees and costs have been paid.
§ 1405a.3. Sports wagering gaming service provider registration applications.
(a) A person seeking sports wagering gaming service provider registration, not otherwise excluded under § 1405a.1(c) (relating to general sports wagering gaming service provider requirements), shall submit a Gaming Service Provider Registration Form unless otherwise directed by the Bureau of Licensing. The original, copy and the application fee toward the cost of the investigation of the sports wagering gaming service provider applicant, as posted on the Board's web site, shall be submitted to the Bureau of Licensing by the sports wagering gaming service provider unless otherwise directed by the Bureau of Licensing.
(b) In addition to the materials required under subsection (a), an applicant for a sports wagering gaming service provider registration shall do all of the following:
(1) Submit release authorizations for each individual required to be qualified under § 1405a.4 (relating to qualification of individuals and entities of certified sports wagering gaming service providers).
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(3) Submit fingerprints of all of the following individuals in a manner prescribed by the Bureau:
(i) Each officer and director of the registered sports wagering gaming service provider applicant. For purposes of this subparagraph, ''officer'' means a president, chief executive officer, a chief financial officer and a chief operating officer, and any person routinely performing corresponding functions with respect to an organization whether incorporated or unincorporated.
(ii) Each individual who has a direct or indirect ownership or beneficial interest of 10% or more in the registered sports wagering gaming service provider applicant.
(iii) Each salesperson of a registered sports wagering gaming service provider who solicits business from, or has regular contact with, any representatives of a certificate holder or licensee or any employee of a registered sports wagering gaming service provider applicant who will be engaging in that conduct.
(c) A person who holds any direct or indirect ownership or beneficial interest in a registered sports wagering gaming service provider or has the right to any profits or distributions directly or indirectly, from the registered sports wagering gaming service provider or applicant for sports wagering gaming service provider registration may be required to submit fingerprints if the Bureau determines that the submission of fingerprints of the person is necessary to protect the public interest or to enhance the integrity of gaming in this Commonwealth.
(d) Each of the individuals required to submit fingerprints under subsection (b)(3) shall be found qualified by the Board.
(e) An individual who is a gaming or nongaming employee as defined in §§ 401a.3 and 1401a.2 (relating to definitions) shall obtain a gaming employee occupation permit in accordance with §§ 435a.3 and 1406a.4 (relating to occupation permit; and sports wagering gaming employees) or a nongaming employee registration in accordance with §§ 435a.5 and 1406a.5 (relating to nongaming employee registration; and sports wagering nongaming employees).
(f) An applicant for a sports wagering gaming service provider registration shall reimburse the Board for costs incurred in conducting the investigation of the applicant.
(g) A sports wagering gaming service provider registration will not be issued until all fees and costs have been paid.
§ 1405a.4. Qualification of individuals and entities of certified sports wagering gaming service providers.
(a) The following individuals are required to submit a Pennsylvania Personal History Disclosure Form and be found qualified by the Board:
(1) Each officer and director of a certified sports wagering gaming service provider or applicant for sports wagering gaming service provider certification. For the purposes of this paragraph, ''officer'' means a president, chief executive officer, a chief financial officer and a chief operating officer and any person routinely performing corresponding functions with respect to an organization whether incorporated or unincorporated.
(2) Each individual who has a direct or indirect ownership or beneficial interest of 10% or more in the certified sports wagering gaming service provider or applicant for sports wagering gaming service provider certification. A certified sports wagering gaming service provider or applicant for sports wagering gaming service provider certification shall provide information or documentation requested by the Board necessary to determine compliance with this paragraph.
(3) Each salesperson of a certified sports wagering gaming service provider who solicits business from, or has regular contact with, any representatives of a certificate holder or operator or any employee of a certified sports wagering gaming service provider or applicant for interactive gaming service provider certification who will be engaging in that conduct.
(b) Each entity that directly owns 20% or more of the voting securities of a certified sports wagering gaming service provider or person applying for sports wagering gaming service provider certification shall file a Certification Form—Holding Company with the Bureau of Licensing and be found qualified by the Board.
(c) The following persons may be required to submit a Certification Form—Holding Company or a Pennsylvania Personal History Disclosure Form and be found qualified by the Board if the Bureau of Licensing determines that the qualification of the person is necessary to protect the public interest or to enhance the integrity of gaming in this Commonwealth:
(1) An intermediary or holding company of a certified sports wagering gaming service provider or applicant for sports wagering gaming service provider certification not otherwise required to be qualified.
(2) An officer or director of an intermediary or holding company of a certified sports wagering gaming service provider or applicant for sports wagering gaming service provider certification.
(3) An employee of a certified sports wagering gaming service provider or applicant for sports wagering gaming service provider certification.
(4) A person who holds any direct or indirect ownership or beneficial interest in a certified sports wagering gaming service provider or applicant for sports wagering gaming service provider certification, or has the right to any profits or distribution, directly or indirectly, from the certified sports wagering gaming service provider or applicant for sports wagering gaming service provider certification.
(5) A trustee of a trust that is required to be found qualified under this section.
(d) The Bureau of Licensing may issue a temporary credential to an individual who is required to be qualified by the Board under this section if:
(1) The individual's presence in a restricted gaming area is needed.
(2) The company with which the individual is associated is on the authorized Gaming Service Provider List.
(e) Upon request, the Bureau of Licensing will issue a credential to an individual who has been found qualified under this section if the sports wagering gaming service provider has been certified.
(f) An employee of a certified sports wagering gaming service provider who is a gaming or nongaming employee as defined in §§ 401a.3 and 1401a.2 (relating to definitions) shall obtain a permit under §§ 435a.3 and 1406a.4 (relating to occupation permit; and sports wagering gaming employees) or registration under §§ 435a.5 and 1406a.5 (relating to nongaming employee registration; and sports wagering nongaming employees).
§ 1405a.5. Sports wagering gaming service provider registration and certification term and renewal.
(a) Sports wagering gaming service provider certifications, registrations and renewals issued under this subpart will be valid for 5 years from the date of Board approval.
(b) Registered and certified sports wagering gaming service providers shall submit to the Board a completed renewal application or form and renewal fee at least 6 months prior to the expiration of a certification, registration or authorization.
(c) A certification or registration for which a completed renewal application and fee has been received by the Bureau of Licensing will continue to be in effect until the Board sends written notification to the holder of the certification or registration that the Board has approved or denied the certification or registration.
§ 1405a.6. Authorized sports wagering gaming service providers list; prohibited sports wagering gaming service providers.
(a) The Board will maintain a list of authorized sports wagering gaming service providers and a list of prohibited sports wagering gaming service providers. The authorized list will contain the names of persons or entities who:
(1) Have been registered or certified.
(2) Are currently authorized to conduct business with sports wagering certificate holders or sports wagering operators under § 1405a.7 (relating to permission to conduct business prior to certification or registration).
(b) Except as permitted under § 1405a.8 (relating to emergency sports wagering gaming service provider), a sports wagering certificate holder or sports wagering operator may not purchase goods or services from a sports wagering gaming service provider unless the sports wagering gaming service provider is on the Certified and Registered Authorized List. A sports wagering certificate holder or sports wagering operator or any affiliate, intermediary, subsidiary or holding company thereof acting on behalf of the sports wagering certificate holder or sports wagering operator may not enter into an agreement or continue to do business with a sports wagering gaming service provider on the Prohibited Gaming Service Providers List.
(c) The Board may place a person on the Prohibited Gaming Service Provider List if:
(1) The sports wagering gaming service provider has failed to comply with this chapter.
(2) The sports wagering gaming service provider has failed to cooperate with Board staff in its review and investigation of the sports wagering gaming service provider's application.
(3) The sports wagering gaming service provider's application for certification or registration has been denied or withdrawn with prejudice or the sports wagering gaming service provider has had its sports wagering gaming service provider certification or registration suspended or revoked.
(4) The sports wagering gaming service provider has failed to provide information to a sports wagering certificate holder or sports wagering operator that is necessary for the sports wagering certificate holder or sports wagering operator to comply with this chapter.
(d) A person seeking to be removed from the Prohibited Gaming Service Providers List shall file a petition for removal in accordance with § 493a.4 (relating to petitions generally) and shall be responsible for all costs associated with the person's petition for removal from the Prohibited Gaming Service Providers List. The petition must state the specific grounds believed by the petitioner to constitute good cause for removal from the Prohibited Gaming Service Providers List and how the sports wagering gaming service provider has cured any deficiencies that led to the sports wagering gaming service provider being placed on the Prohibited Gaming Service Providers List.
(e) The Board may impose a monetary penalty or other appropriate sanction in connection with the removal of a person from the Prohibited Gaming Service Providers List, or attach any reasonable condition to the removal of a person from the Prohibited Gaming Service Providers List.
§ 1405a.7. Permission to conduct business prior to certification or registration.
(a) Notwithstanding § 1405a.1 (relating to general sports wagering gaming service provider requirements), the Bureau of Licensing may authorize an applicant for a sports wagering gaming service provider certification or registration to conduct business with a sports wagering certificate holder or sports wagering operator prior to the certification or registration of the sports wagering gaming service provider applicant if all of the following criteria are met:
(1) A completed Gaming Service Provider Registration Form or a completed Gaming Service Provider Certification Application and Disclosure Information Form has been filed by the certificate holder or licensee in accordance with this chapter.
(2) The sports wagering certificate holder or sports wagering operator certifies that it has performed due diligence on the sports wagering gaming service provider applicant.
(3) The applicant for a sports wagering gaming service provider registration or certification agrees, in writing, that the grant of permission to conduct business prior to registration or certification does not create a right to continue to conduct business and that the Bureau of Licensing may rescind, at any time, the authorization granted under this section, with or without prior notice to the applicant, if the Bureau of Licensing is informed that the suitability of the applicant may be at issue or the applicant fails to cooperate in the application or investigatory process.
(b) If the Office of Enforcement Counsel issues a Notice of Recommendation for Denial to an applicant for certification or registration, the Bureau of Licensing may rescind the permission granted to the applicant for certification or registration to conduct business with a sports wagering certificate holder or sports wagering operator under subsection (a). If the permission is rescinded, the applicant for certification or registration shall cease conducting business with the sports wagering certificate holder or sports wagering operator by the date specified in the notice of the rescission by the Bureau of Licensing under subsection (c).
(c) The Bureau of Licensing will notify the applicant for certification or registration and the sports wagering certificate holder or sports wagering operator by regular mail or e-mail, or both, that permission for the applicant for certification or registration to conduct business with the sports wagering certificate holder or sports wagering operator under subsection (a) has been rescinded and that the sports wagering certificate holder or sports wagering operator shall cease conducting business with the applicant for certification or registration by the date specified in the notice.
§ 1405a.8. Emergency sports wagering gaming service provider.
(a) A sports wagering certificate holder or sports wagering operator may utilize a sports wagering gaming service provider that is not registered, certified or authorized to conduct business in accordance with § 1405a.6 (relating to authorized sports wagering gaming service providers list; prohibited sports wagering gaming service providers) when a threat to public safety exists or circumstances outside the control of the sports wagering certificate holder or sports wagering operator create an urgency of need which does not permit the delay involved in using the formal method of sports wagering gaming service provider certification or registration. A sports wagering certificate holder or sports wagering operator may not use a sports wagering gaming service provider on the Prohibited Gaming Service Provider List.
(b) When using a sports wagering gaming service provider that is not registered, certified or authorized to conduct business to respond to an emergency, the sports wagering certificate holder or sports wagering operator shall do all of the following:
(1) Immediately notify the Bureau of Licensing of the emergency and the sports wagering gaming service provider that was selected to provide emergency services.
(2) File a Sports Wagering Gaming Service Provider Emergency Notification Form with the Bureau of Licensing within 72 hours after commencement of the sports wagering gaming service provider's services and a written explanation of the basis for the procurement of the emergency sports wagering gaming service provider.
(c) An employee of the emergency sports wagering gaming service provider who is providing emergency services that requires access to restricted area shall obtain a temporary access credential in accordance with § 1406a.7 (relating to emergency and temporary credentials) prior to performing any work.
(d) If the sports wagering certificate holder or sports wagering operator continues to utilize the sports wagering gaming service provider after the emergency circumstances have passed or if the Bureau of Licensing determines that the circumstances did not necessitate the use of an emergency sports wagering gaming service provider that was not registered, certified or on the authorized list, the sports wagering certificate holder or sports wagering operator and sports wagering gaming service provider shall comply with the requirements in this chapter.
§ 1405a.9. Duty to investigate.
(a) A sports wagering certificate holder or sports wagering operator shall investigate the background and qualifications of the applicants for sports wagering gaming service provider registration or certification with whom it intends to have a contractual relationship or enter into an agreement.
(b) A sports wagering certificate holder or sports wagering operator has an affirmative duty to avoid agreements or relationships with persons applying for a sports wagering gaming service provider registration or certification whose background or associations are injurious to the public health, safety, morals, good order and general welfare of the people of this Commonwealth, or who threaten the integrity of gaming in this Commonwealth.
(c) A sports wagering certificate holder or sports wagering operator has a duty to inform the Board of an action by an applicant for or holder of a sports wagering gaming service provider registration or certification, which the sports wagering certificate holder or sports wagering operator believes would constitute a violation of the act or this subpart.
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