Section 5329.1 sets forth definitions applicable to sports wagering.

Section 5329.2 sets forth the process by which a gaming facility may petition for a sports pool license.

Section 5329.3 sets forth the term of a sports pool license and describes the review process for continuing licensure.

Section 5329.4 allows for contracting with a sports pool vendor to operate or assist in the operation of sports pools on behalf of a gaming facility and sets forth licensing requirements.

Section 5329.5 establishes a continuing duty to report operator and sports pool vendor changes.

Section 5329.6 describes occupational licensing requirements of individuals.

Section 5329.7 authorizes action in the event of misconduct or improper associations.

Section 5329.8 requires internal controls and sets forth minimum requirements for internal controls.

Section 5329.9 sets forth requirements for the sports wagering lounge physical space.

Section 5329.10 sets forth sports pool system requirements.

Section 5329.11 sets forth regulations for automated ticket machines.

Section 5329.12 requires each operator to establish house rules for sports wagering and sets forth minimum requirements for house rules.

Section 5329.13 regulates wager types and sets forth that prior Commission approval of a wager type is required.

Section 5329.14 sets forth requirements for parlay card wagers.

Section 5329.15 allows layoff wagers as a risk management tool.

Section 5329.16 requires certain information to be available to patrons.

Section 5329.17 sets forth requirements for the manner in which wagers may be placed.

Section 5329.18 sets forth requirements for wagering tickets.

Section 5329.19 sets forth certain restrictions on wagering, including by minors, prohibited persons and proxies.

Section 5329.20 regulates ticket payout procedures and establishes certain reporting requirements.

Section 5329.21 regulates the circumstances under which wagers may be cancelled.

Section 5329.22 prohibits the structuring of wagers to avoid compliance with law or regulation.

Section 5329.23 requires diligent investigation of patron complaints.

Section 5329.24 sets forth operator reserve requirements.

Section 5329.25 prohibits dishonest actions in connection with sports wagering.

Section 5329.26 establishes duties to report dishonest or unlawful acts, bribes, suspicious activity and suspected money laundering.

Section 5329.27 requires the establishment of controls to identify unusual betting activity and requires the retention of an integrity monitoring provider to assist in the identification of suspicious betting activity and cooperation with others in protecting the integrity of underlying sports events.

Section 5329.28 sets forth regulations in regard to the payment and reporting of tax.

Section 5329.29 sets forth procedures to report and reconcile gross gaming revenue.

Section 5329.30 sets forth requirements for accounting and financial records.

Section 5329.31 establishes a duty to give evidence to the Commission when requested or ordered to do so.

Section 5329.32 requires compliance assessments.

Section 5329.33 empowers the Commission to review and examine records.

Section 5329.34 requires compliance with responsible gaming obligations.

Section 5329.35 sets forth that other casino regulations apply.

Section 5329.36 sets forth Commission power to suspend or revoke licenses or impose fines, when appropriate.

1. STATUTORY AUTHORITY: Racing, Pari-Mutuel Wagering and Breeding Law (“Racing Law”) section 104(19) grants authority to the Gaming Commission (“Commission”) to promulgate rules and regulations that it deems necessary to carry out its responsibilities.

Racing Law section 1307(1) authorizes the Commission to adopt regulations that it deems necessary to protect the public interest in carrying out the provisions of Racing Law, Article 13, section 1367(3)(a), (b) and (5).

Racing Law section 1307(2)(g) authorizes the Commission to define and limit areas of operation, the rules of authorized games, the devices permitted and the method of operation if such games and devices.

Racing Law section 1367(3)(a) authorizes the Commission to promulgate regulations in regard to the operation of sports pools.

Racing Law section 1367(3)(b) authorizes the Commission to regulate the requirements of sports lounges.

Racing Law section 1367(5) authorizes the Commission to regulate the conduct of sports wagering.

2. LEGISLATIVE OBJECTIVES: The above referenced statutory provisions carry out the legislature’s stated goal “to tightly and strictly” regulate casinos “to guarantee public confidence and trust in the credibility and integrity of all casino gambling in the state,” as set forth in Racing Law section 1300(10).

3. NEEDS AND BENEFITS: The proposed rule is necessary because statutes direct the Gaming Commission to implement statutory requirements through rulemaking and develop regulations in regard to aspects of sports wagering at casinos. In particular, Racing Law section 1367(5) directs the Commission to promulgate regulations necessary to carry out the provisions of this section, including, but not limited to, regulations governing the:

(a) amount of cash reserves to be maintained by operators to cover winning wagers;

(b) acceptance of wagers on a series of sports events;

(c) maximum wagers which may be accepted by an operator from any one patron on any one sports event;

(d) type of wagering tickets which may be used;

(e) method of issuing tickets;

(f) method of accounting to be used by operators;

(g) types of records which shall be kept;

(h) use of credit and checks by patrons;

(i) type of system for wagering; and

(j) protections for a person placing a wager.

Adoption of the regulations would allow licensed gaming facilities to conduct sports wagering, thereby increasing appeal to patrons, gaming facility revenue and tax revenue to the State, within a regulatory environment designing to protect patrons, promote the integrity of wagering, enhance monitoring of the integrity of underlying sports events that are the subject of wagering and promote responsible gaming.

4. COSTS:

(a) Costs to the regulated parties for the implementation of and/or continuing compliance with this rule: The anticipated cost of implementing and complying with the proposed regulations is not yet determined, but would entail an investment in systems, vendors and integrity monitoring providers, among other things.

(b) Costs to the regulating agency, the State, and local governments for the implementation of and continued administration of the rule: The costs to the Commission for the implementation of and continued administration of the rule will be negligible given that all such costs are the responsibility of the gaming facility. These rules will not impose any additional costs on local governments.

(c) The information, including the source or sources of such information, and methodology upon which the cost analysis is based: The cost estimates are based on the Commission’s experience regulating racing and gaming activities within the State.

5. LOCAL GOVERNMENT MANDATES: There are no local government mandates associated with these rules.

6. PAPERWORK: The rule is not expected to impose any significant paperwork or reporting requirements on the regulated entities.

7. DUPLICATION: The rule does not duplicate, overlap or conflict with any existing State or federal requirements.

8. ALTERNATIVES: The Commission consulted stakeholders and reviewed other gambling jurisdiction best practices and regulations. Alternatives were discussed and considered with stakeholders and compared to other jurisdiction regulations, such as whether wager types should require Commission approval, whether auto0mated ticket machines would be permitted outside a sports wagering lounge, whether top reduce the require records retention period, whether to reduce the automated ticket machine replenishment requirements, what type of suspicious activity should be reported to the Commission and parlay card regulations. Racing Law section 1367(5) directs the Commission “to regulate sports pools and the conduct of sports wagering…to the same extent that the commission regulates other gaming.” That Racing Law section also provides, “In developing rules and regulations applicable to sports wagering, the commission shall examine the regulations implemented in other states where sports wagering is conducted and shall, as far as practicable, adopt a similar regulatory framework.”

9. FEDERAL STANDARDS: There are no federal standards applicable to the licensing of gaming facilities in New York; it is purely a matter of New York State law.

10. COMPLIANCE SCHEDULE: The Commission anticipates that the affected parties will be able to achieve compliance with these rules upon adoption.

The proposed rule will not have any adverse impact on small businesses, local governments, jobs or rural areas. This rule is intended to promote public confidence and trust in the credibility and integrity of sports wagering at casinos in New York State.

The proposed rule does not impact local governments or small businesses as no local government or small business is eligible to hold a sports pool license and no local government or small business is anticipated to be a sports pool vendor.

The proposed rule imposes no adverse impact on rural areas. The rule applies uniformly throughout the state.

The proposed rule will have no adverse impact on job opportunities.

This rule will not adversely impact small businesses, local governments, jobs, or rural areas. Accordingly, a full Regulatory Flexibility Analysis, Rural Area Flexibility Analysis, and Job Impact Statement are not required and have not been prepared.