Title 9 Part 5330

This Part applies to mobile sports wagering conducted by a mobile sports wagering licensee pursuant to Racing Pari-Mutuel Wagering and Breeding Law sections 1367 and 1367-a.

Unless the context indicates otherwise, the following definitions and the definitions set forth in Racing, Pari-Mutuel Wagering and Breeding Law sections 1367 and 1367-a are applicable throughout this Part:

Only platform providers and associated skins selected by the commission as a result of a competitive request-for-application process conducted by the commission may submit a license application to operate as such.

The commission may disqualify any application to become a platform provider and associated skin that:

A selected platform provider applicant shall be eligible for licensure by the commission as such. Potential skins associated with selected platform provider applicants shall be eligible for licensure by the commission as skins.

Upon execution of an agreement between a skin and its platform provider, the platform provider applicant shall submit such agreement to the commission for review prior to licensure.

A platform provider, a skin and a mobile sports wagering vendor shall satisfy the standards for licensure equivalent to those set forth for a casino vendor enterprise set forth in Racing, Pari-Mutuel Wagering and Breeding Law section 1326 and Parts 5303 and 5307 of this Title.

A license granted to a mobile sports wagering licensee shall remain in effect for up to 10 years. See Racing, Pari-Mutuel Wagering and Breeding Law section 1367-a(2)(b), establishing a maximum license period.

The commission shall establish the process and requirements for renewal at an appropriate time that coincides with the ending of such term of license established in subdivision (a) of this Part.

A mobile sports wagering licensee shall report any changes to its application, as set forth in section 5329.5 of this Title, which changes are subject to the approval of the commission.

Entities offering goods and services that directly relate to gaming activity with a mobile sports wagering licensee, including, without limitation, manufacturers, suppliers, software providers and repair companies, shall submit a mobile sports wagering vendor license application. Each mobile sports wagering vendor shall be licensed as such according to the standards equivalent to those set forth for casino vendor enterprises in Racing Pari-Mutuel Wagering and Breeding Law section 1326 and Parts 5303 and 5307 of this Title.

Each mobile sports wagering licensee and mobile sports wagering vendor shall have a continuing duty to disclose, as soon as practicable, any material change or changes in such entity’s business form or activity; information submitted in support of a review pursuant to section 5330.3 of this Part; information provided to authorized sports bettors; information provided to investors; or information provided in an annual report, or statutory duty to provide information, to the commission.

A person directly involved in the conduct and operation of mobile sports wagering pursuant to this Part who is determined to be a key employee, whether at a mobile sports wagering licensee or mobile sports wagering vendor, shall be licensed by the commission as a mobile sports wagering key employee according to standards equivalent to those of a casino key employee, as determined by the commission, as guided by the standards set forth in title 3 of article 13 of the Racing, Pari-Mutuel Wagering and Breeding Law and Parts 5303 and 5304 of this Title.

Each mobile sports wagering licensee shall register with the commission employees involved in the operation of mobile sports wagering pursuant to this Part who are not deemed to be a mobile sports wagering key employee pursuant to subdivision (a) of this section. Registration shall consist of the submission to the commission, quarterly, a roster of such employees that shall identify each employee’s name, job title, job location and such other identifying information as the commission may require. Any employee information that has changed or been deleted from the previous quarterly report shall be highlighted.

A person employed by a mobile sports wagering licensee who requires access to servers and other equipment located at a casino shall be licensed as a mobile sports wagering employee according to standards equivalent to those set forth in section 5304 of this Title. Such employees shall be granted access to the casino only for duties as they relate to mobile sports wagering.

The provisions of section 5329.7 of this Title are incorporated herein and shall apply also to each mobile sports wagering licensee and mobile sports wagering vendor licensee.

Each mobile sports wagering licensee shall submit to the commission, for approval, internal controls for all aspects of mobile sports wagering operations prior to commencing operations. The submission of internal controls shall be organized to correspond to the subdivisions set forth in this section.

Internal controls for system requirements shall address:

Internal controls for authorized sports bettor account requirements shall address:

A skin shall provide the acknowledgment set forth in paragraph (c)(11) of this section whenever such skin knows or should know that an authorized sports bettor has taken or is attempting to take action designed to circumvent the monetary threshold set forth in such paragraph.

Internal controls for operational requirements shall address:

A mobile sports wagering licensee shall submit to the commission any proposed amendment to such licensee’s approved internal controls at least 30 days in advance of the date the proposed amendment is intended to take effect. If a proposed amendment is requested to take effect in fewer than 30 days, the mobile wagering licensee shall submit an expedited amendment request to the commission.

Prior to conducting mobile sports wagering, all equipment and software used in conjunction with its operation shall be submitted to a licensed independent gaming test laboratory for review and certification for compliance with the standards set forth in this Part and any additional technical requirements the commission establishes.

The platform, servers and other equipment to accept sports wagers shall be located within a casino, as the commission shall direct and facilitate. A casino at which such equipment is located shall ensure that access to such equipment is granted to licensed employees of the mobile sports wagering licensee whose equipment is located there.

The systems of a platform provider shall be able to provide the following, at a minimum:

The systems of a skin shall be responsible for the following, at a minimum:

If a mobile sports wagering licensee communicates with a third-party system, such licensee shall ensure the integrity of such communications through encryption or the use of secure communications protocols.

A mobile sports wagering system provided by a mobile sports wagering licensee shall be capable of recording the following information for each sports wager made in the system:

A skin shall prevent past posting of sports wagers and the voiding or cancellation of sports wagers after the outcome of an event is known.

A skin shall, at least once every 24 hours, perform a self-authentication process on all software used in the mobile sports wagering system to offer, record and process sports wagers to ensure there have been no unauthorized modifications. In the event that an unauthorized modification is identified as a result of this process, a skin shall notify the commission promptly. The mobile sports wagering system shall record the results of all self-authentication attempts and maintain such record for a period of not less than 90 days.

A skin shall have controls in place to review the accuracy and timeliness of any data feeds used in its mobile sports wagering system to offer or settle sports wagers. In the event that an incident or error occurs that results in a loss of communication with data feeds, such error shall be recorded in a log capturing the date and time of the error and the nature of the error. Errors shall be submitted to the commission within 48 hours of occurrence. Such information shall be maintained by the reporting skin for a period of not less than six months.

Consistent with existing commission authority and in a manner approved by the commission, a skin shall provide the commission with access to servers and other software used in creation of sports wagers, sports wagering transactions and related data the commission may deem necessary.

The provisions of section 5329.12 of this Title are incorporated herein and shall apply also to each skin.

The provisions of section 5329.13 of this Title are incorporated herein and shall apply also to each skin.

A skin may, in its discretion, accept a layoff wager from another New York State licensed skin or a casino sports wagering licensee, as casino sports wagering licensee is defined in section 5329.1 of this Title. Any such wager shall be placed in the name of the skin or casino sports wagering licensee itself that is placing the layoff wager. A layoff wager and, if applicable, a resultant payout shall not be included in the calculation of mobile sports wagering gross gaming revenue. Each layoff wager shall be reported to the commission, if possible, prior to the placement of such wager. If not possible, a skin or casino sports wagering licensee shall submit the details of the layoff wager to the commission’s division of gaming within 24 hours of the placement of such wager. Layoff wagers shall not be executed with operators in other jurisdictions unless all Federal law requirements are met as well.

No mobile sports wager shall be valid until such sports wager is accepted at a server or other electronic equipment located at a casino.

The provisions of section 5329.19 of this Title are incorporated herein and shall apply also to each skin.

The provisions of section 5329.21 of this Title are incorporated herein and shall apply also to each skin.

The provisions of section 5329.23 of this Title are incorporated herein and shall apply also to each skin.

In addition, as required by Racing, Pari-Mutuel Wagering and Breeding Law section 1367(5):

The provisions of section 5329.24 of this Title are incorporated herein and shall apply also to each skin.

The provisions of section 5329.25 of this Title are incorporated herein and shall apply also to each mobile sports wagering licensee.

The provisions of section 5329.26 of this Title are incorporated herein and shall apply also to each mobile sports wagering licensee and its employees and each mobile sports wagering vendor licensee and its employees.

The provisions of section 5329.27 of this Title, except subdivision (g) of this Part (the substance of which is addressed elsewhere in this Part), are incorporated herein and shall apply also to each skin and, as the context requires, platform provider, and its respective employees and each mobile sports wagering vendor licensee and its employees.

For the privilege of conducting sports wagering in this State, each platform provider shall be taxed pursuant to the rate established pursuant to the process set forth in Racing, Pari-Mutuel Wagering and Breeding Law section 1367(7).

Tax attributable to mobile sports wagering, including any applicable interest and penalties, shall be transmitted weekly by electronic funds transfer to the commission at such times and in such manner as the commission may direct. All gross gaming taxes are the responsibility of and shall be submitted by the platform provider.

All weekly mobile sports wagering tax reports filed with the commission pursuant to this section shall reflect mobile sports wagering gross gaming revenue and tax revenue remitted to the State received by the skins associated with a platform provider for the period of the return. Each platform provider shall clearly delineate funds received from each skin.

When the commission finds that a platform provider is required to pay additional taxes or finds that a platform provider is entitled to a refund of taxes, the commission shall report to such platform provider its findings, along with the basis on which such findings are made.

Gross gaming revenue reports and reconciliation; responsible-gaming

data.

The provisions of section 5329.30 of this Title are incorporated herein and shall apply also to each mobile sports wagering licensee.

The provisions of section 5329.31 of this Title are incorporated herein and shall apply also to each mobile sports wagering licensee.

The provisions of section 5329.32 of this Title are incorporated herein and shall apply also to each mobile sports wagering licensee.

The provisions of section 5329.33 of this Title are incorporated herein and shall apply also to each mobile sports wagering licensee.

A skin shall maintain a publicly accessible internet page dedicated to responsible play, a link to which must appear on the skin’s website and in any mobile application or electronic platform on which an authorized sports bettor may place sports wagers through such skin, as required by Racing, Pari-Mutuel Wagering and Breeding Law section 1367-a(4)(a)(xiv). The responsible play page shall include:

A skin shall submit annually on or before September 1st to the commission for approval, as required by Racing, Pari-Mutuel Wagering and Breeding Law section 1367-a(4)(a)(xv), a problem-gaming plan that includes, at a minimum:

Each skin shall comply with the problem gaming, self-exclusion and excluded person requirements, including trainings, set forth in Parts 5325 and 5327 of this Title as if such licensee were a gaming facility licensee and with Part 5402 of this Title.

The provisions of section 5329.36 of this Title are incorporated herein and shall apply also to each mobile sports wagering licensee, mobile sports wagering key employee, mobile sports wagering employee and person having access to a mobile sports wagering server.

Authorized sports bettor account requirements.

A skin shall submit to the commission all mobile sports wagering promotions for approval a minimum of 15 days prior to the intended commencement of such promotion. Any such proposed promotion shall:

See section 5330.29(g) of this Part.

As a condition of licensure, a platform provider shall pay to the commission the one-time fee set forth in Racing, Pari-Mutuel Wagering and Breeding Law 1367-a(3). Such fee shall be paid no later than 30 days after the commission selects such platform provider for potential licensure, as set forth in Racing, Pari-Mutuel Wagering and Breeding Law 1367a(3).

The commission shall determine where, including at which casino, a mobile sports wagering licensee’s servers and other equipment used in accepting a mobile sports wager shall be located. Such servers and equipment shall be:

A server or other equipment that a platform provider locates at a casino shall be used exclusively in support of mobile sports wagering.

Any costs of the commission necessary to maintain regulatory control over mobile sports wagering shall be assessed annually on each casino in proportion to the aggregate mobile sports wagering gross revenue in this State of the skins associated with the platform provider whose server is located at such casino compared to the aggregate mobile sports wagering gross revenue in this State for the period billed. Each casino shall pay the amount assessed against it within 30 days after the date of the notice of assessment from the commission. Nothing in this section shall prevent a casino from recouping the cost of such assessments pursuant to section 5330.40(b)(2) of this Part.

The commission, on or before September 1st of each year, shall assess platform providers aggregate fees in the amount of the commission’s costs to produce the annual report required by Racing, Pari-Mutuel Wagering and Breeding Law 1367-a(6). The fee assessed against each platform provider shall be the commission’s cost multiplied by the aggregate gross gaming revenue of such platform provider’s associated skins for the period and divided by the aggregate gross gaming revenue of all skins in this State for the same period.

A skin shall comply with the anti-money laundering requirements set forth in section 5315.17 of this Title as if such skin were a gaming facility licensee.

Geolocation software used by mobile sports wagering licensees shall be approved by a licensed independent testing laboratory, including applicable field testing, before the software is deployed in this State. Geolocation requirements include:

The commission, at its discretion, may publish bulletins to specify additional geolocation requirements.