CHAPTER 229b

LICENSING AND REGULATION OF ONLINE CASINO GAMING,
SPORTS WAGERING, FANTASY CONTESTS,
KENO AND ONLINE SALE OF LOTTERY TICKETS

Table of Contents

Sec. 12-850. Definitions.

Sec. 12-851. Agreements with Mashantucket Pequot Tribe and Mohegan Tribe of Indians of Connecticut re gaming.

Sec. 12-852. Master wagering licenses for Mashantucket Pequot Tribe and Mohegan Tribe of Indians of Connecticut.

Sec. 12-853. Master wagering license for Connecticut Lottery Corporation.

Sec. 12-853a. Online lottery ticket sales fund.

Sec. 12-854. Connecticut Lottery Corporation operation of retail sports wagering facilities.

Sec. 12-855. Online gaming service provider license.

Sec. 12-856. Sports wagering retailer license.

Sec. 12-857. Online gaming operator license.

Sec. 12-858. Occupational employee license.

Sec. 12-859. Key employee license.

Sec. 12-860. Key employee or occupational employee and sovereign immunity.

Sec. 12-861. Investigations and hearings held by commissioner. Document retention. Subpoenas. Injunctions.

Sec. 12-862. Action by commissioner against licensee.

Sec. 12-863. Requirements for conducting sports wagering, online casino gaming, and fantasy contests. Electronic wagering platform requirements. Independent review of operations. Advertising restrictions.

Sec. 12-864. Prohibited sports wagering.

Sec. 12-865. Regulations.

Sec. 12-866. Payments to the state based on gross gaming revenue from online casino gaming.

Sec. 12-867. Payments to the state based on gross gaming revenue from online or retail sports wagering.

Sec. 12-868. Payments to the state based on gross receipts from fantasy contests.

Sec. 12-869. Assessment of costs to regulate online sports wagering or online casino gaming. State Sports Wagering and Online Gaming Regulatory Fund.

Sec. 12-870. Payments toward minimum contribution pursuant to Mashantucket Pequot memorandum of understanding and Mohegan memorandum of understanding.

Sec. 12-871. Contributions to support problem gambling programs.

Sec. 12-872. Nonseverability.


Sec. 12-850. Definitions. For the purposes of this section and sections 12-851 to 12-871, inclusive:

(1) “Business entity” means any partnership, limited liability company, society, association, joint stock company, corporation, estate, receiver, trustee, assignee, referee or any other legal entity and any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination thereof;

(2) “Commissioner” means the Commissioner of Consumer Protection or the commissioner's designee;

(3) “Connecticut intercollegiate team” means any team associated with an intercollegiate program of a university or college of the state system of public higher education, as described in section 10a-1, an independent institution of higher education, as defined in section 10a-173, or a for-profit college or university physically located in the state that offers in-person classes within the state;

(4) “Department” means the Department of Consumer Protection;

(5) “Electronic wagering platform” means the combination of hardware, software and data networks used to manage, administer, offer or control Internet games or retail sports wagering at a facility in this state;

(6) “E-bingo machine” means an electronic device categorized as a class II machine under the federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq. used to play bingo that is confined to a game cabinet and is substantially similar in appearance and play to a class III slot machine. “E-bingo machine” does not include any other electronic device, aid, instrument, tool or other technological aid used in the play of any in-person class II bingo game;

(7) “Entry fee” means the amount of cash or cash equivalent that is required to be paid by an individual to a master wagering licensee in order for such individual to participate in a fantasy contest;

(8) “E-sports” means electronic sports and competitive video games played as a game of skill;

(9) “Fantasy contest” means any fantasy or simulated game or contest with an entry fee, conducted over the Internet, including through an Internet web site or a mobile device, in which: (A) The value of all prizes and awards offered to a winning fantasy contest player is established and made known to the players in advance of the game or contest; (B) all winning outcomes reflect the knowledge and skill of the players and are determined predominantly by accumulated statistical results of the performance of participants in events; and (C) no winning outcome is based on the score, point spread or any performance of any single team or combination of teams or solely on any single performance of a contestant or player in any single event. “Fantasy contest” does not include lottery games;

(10) “Internet games” means (A) online casino gaming; (B) online sports wagering; (C) fantasy contests; (D) keno through the Internet, an online service or a mobile application; and (E) the sale of tickets for lottery draw games through the Internet, an online service or a mobile application;

(11) “Keno” has the same meaning as provided in section 12-801;

(12) “Key employee” means an individual with the following position or an equivalent title associated with a master wagering licensee or a licensed online gaming service provider, online gaming operator or sports wagering retailer: (A) President or chief officer, who is the top ranking individual of the licensee and is responsible for all staff and the overall direction of business operations; (B) financial manager, who is the individual who reports to the president or chief officer who is generally responsible for oversight of the financial operations of the licensee, including, but not limited to, revenue generation, distributions, tax compliance and budget implementation; or (C) compliance manager, who is the individual that reports to the president or chief officer and who is generally responsible for ensuring the licensee complies with all laws, regulations and requirements related to the operation of the licensee. “Key employee” includes an individual (i) who exercises control over technical systems; (ii) who has an ownership interest, provided the interest held by such individual and such individual's spouse, parent and child, in the aggregate, is five per cent or more of the total ownership or interest rights in the licensee; or (iii) who, in the judgment of the commissioner, exercises sufficient control in, or over, a licensee as to require licensure. Tribal membership in and of itself shall not constitute ownership for purposes of this subdivision;

(13) “Lottery draw game” means any game in which one or more numbers, letters or symbols are randomly drawn at predetermined times, but not more frequently than once every four minutes, from a range of numbers, letters or symbols, and prizes are paid to players possessing winning plays, as set forth in each game's official game rules. “Lottery draw game” does not include keno, any game for which lottery draw tickets are not available through a lottery sales agent or any game that simulates online casino gaming;

(14) “Mashantucket Pequot memorandum of understanding” means the memorandum of understanding entered into by and between the state and the Mashantucket Pequot Tribe on January 13, 1993, as amended from time to time;

(15) “Mashantucket Pequot procedures” means the Final Mashantucket Pequot Gaming Procedures prescribed by the Secretary of the United States Department of the Interior pursuant to 25 USC 2710(d)(7)(B)(vii) and published in 56 Federal Register 24996 (May 31, 1991), as amended from time to time;

(16) “Master wagering licensee” means (A) the Mashantucket Pequot Tribe, or an instrumentality of or an affiliate wholly-owned by said tribe, if licensed to operate online sports wagering, online casino gaming and fantasy contests pursuant to section 12-852; (B) the Mohegan Tribe of Indians of Connecticut, or an instrumentality of or an affiliate wholly-owned by said tribe, if licensed to operate online sports wagering, online casino gaming and fantasy contests pursuant to section 12-852; or (C) the Connecticut Lottery Corporation, if licensed pursuant to section 12-853 to operate retail sports wagering, online sports wagering, fantasy contests and keno and to sell tickets for lottery draw games through the Internet, an online service or a mobile application;

(17) “Mohegan compact” means the Tribal-State Compact entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as amended from time to time;

(18) “Mohegan memorandum of understanding” means the memorandum of understanding entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as amended from time to time;

(19) “Occupational employee” means an employee of a master wagering licensee or a licensed online gaming operator, online gaming service provider or sports wagering retailer;

(20) “Off-track betting system licensee” means the person or business organization licensed to operate the off-track betting system pursuant to chapter 226;

(21) “Online casino gaming” means (A) slots, blackjack, craps, roulette, baccarat, poker and video poker, bingo, live dealer and other peer-to-peer games and any variations of such games, and (B) any games authorized by the department, conducted over the Internet, including through an Internet web site or a mobile device, through an electronic wagering platform that does not require a bettor to be physically present at a facility;

(22) “Online gaming operator” means a person or business entity that operates an electronic wagering platform and contracts directly with a master wagering licensee to offer (A) one or more Internet games on behalf of such licensee, or (B) retail sports wagering on behalf of such licensee at a facility in this state;

(23) “Online gaming service provider” means a person or business entity, other than an online gaming operator, that provides goods or services to, or otherwise transacts business related to Internet games or retail sports wagering with, a master wagering licensee or a licensed online gaming operator, online gaming service provider or sports wagering retailer;

(24) “Online sports wagering” means sports wagering conducted over the Internet, including through an Internet web site or a mobile device, through an electronic wagering platform that does not require a sports bettor to be physically present at a facility that conducts retail sports wagering;

(25) “Retail sports wagering” means in-person sports wagering requiring a sports bettor to be physically present at one of the up to fifteen facility locations of the Connecticut Lottery Corporation or a licensed sports wagering retailer in this state;

(26) “Skin” means the branded or cobranded name and logo on the interface of an Internet web site or a mobile application that bettors use to access an electronic wagering platform for Internet games;

(27) “Sporting event” means any (A) sporting or athletic event at which two or more persons participate, individually or on a team, and receive compensation in excess of actual expenses for such participation in such sporting or athletic event; (B) sporting or athletic event sponsored by an intercollegiate athletic program of an institution of higher education or an association of such programs, except for those in which one of the participants is a Connecticut intercollegiate team and the event is not in connection with a permitted intercollegiate tournament; (C) Olympic or international sports competition event; or (D) e-sports event, except for those in which one of the participants is a Connecticut intercollegiate team and the event is not in connection with a permitted intercollegiate tournament. As used in this subdivision, “permitted intercollegiate tournament” means an intercollegiate e-sports, sporting or athletic event involving four or more intercollegiate teams that involves one or more Connecticut intercollegiate teams and the wager on the tournament is based on the outcome of all games within the tournament. “Sporting event” does not include horse racing, jai alai or greyhound racing;

(28) “Sports governing body” means the organization that prescribes final rules and enforces codes of conduct with respect to a sporting event and participants in the sporting event;

(29) “Sports wagering” means risking or accepting any money, credit, deposit or other thing of value for gain contingent in whole or in part, (A) by any system or method of wagering, including, but not limited to, in person or through an electronic wagering platform, and (B) based on (i) a live sporting event or a portion or portions of a live sporting event, including future or propositional events during such an event, or (ii) the individual performance statistics of an athlete or athletes in a sporting event or a combination of sporting events. “Sports wagering” does not include the payment of an entry fee to play a fantasy contest or a fee to participate in e-sports; and

(30) “Sports wagering retailer” means a person or business entity that contracts with the Connecticut Lottery Corporation to facilitate retail sports wagering operated by said corporation through an electronic wagering platform at up to fifteen facilities in this state.

(P.A. 21-23, S. 1.)

History: P.A. 21-23 effective May 27, 2021.

Sec. 12-851. Agreements with Mashantucket Pequot Tribe and Mohegan Tribe of Indians of Connecticut re gaming. (a) The Governor may enter into amendments to the Mashantucket Pequot procedures and to the Mashantucket Pequot memorandum of understanding with the Mashantucket Pequot Tribe, or a new compact with the Mashantucket Pequot Tribe, and may enter into amendments to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut, or a new compact with the Mohegan Tribe of Indians of Connecticut, to:

(1) Permit the Mashantucket Pequot Tribe and Mohegan Tribe of Indians of Connecticut to each conduct (A) in-person sports wagering on the reservation of the tribe, (B) online sports wagering, provided an individual may only place a sports wager through such online sports wagering if the individual is physically present on the reservation of the tribe conducting the online sports wagering when placing the wager, and (C) fantasy contests, provided an individual may only participate in such a contest if the individual is physically present on the reservation of the tribe conducting the fantasy contest when paying the entry fee for such contest;

(2) Provide that any in-person sports wagering, online sports wagering, retail sports wagering or fantasy contests expressly authorized under subdivision (1) of this subsection and sections 12-852 to 12-854, inclusive, during the ten-year initial term or the renewal term as provided in subdivision (3) of this subsection, shall not terminate the moratorium against the operation of video facsimile games by the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut on each tribe's reservation, and provide that any new compact or amendment to each tribe's memorandum of understanding does not relieve each tribe from each tribe's obligation to contribute a percentage of the gross operating revenues of video facsimile games to the state as provided in each tribe's memorandum of understanding;

(3) Provide that any amendment or new compact entered into pursuant to this section shall be valid for an initial term of ten years and an optional five-year renewal term, provided any such renewal term shall only be effective if mutually consented to and exercised by the Governor and both the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut;

(4) Provide that the cessation of authority for either tribe to conduct online sports wagering, online casino gaming and fantasy contests outside its reservation as a result of a violation of the conditions of such authority, as provided for in sections 12-850 to 12-871, inclusive, and the continued authorization of the other tribe, the Connecticut Lottery Corporation or both to conduct activities authorized pursuant to sections 12-850 to 12-871, inclusive, shall not itself terminate the moratorium against the operation of video facsimiles machines or relieve such tribe from any existing obligation to make the contribution to the state under its memorandum of understanding; and

(5) Provide that:

(A) The amendments or new compacts entered into pursuant to this section shall cease to be effective if:

(i) Any provision of an amendment or new compact entered into pursuant to this section is held invalid by a court of competent jurisdiction in a final judgment which is not appealable;

(ii) Any provision of sections 12-850 to 12-871, inclusive, is held invalid by a court of competent jurisdiction in a final judgment which is not appealable; or

(iii) Any amendment made to the provisions of the general statutes pursuant to public act 21-23* is held invalid by a court of competent jurisdiction in a final judgment which is not appealable; and

(B) If such amendments or new compacts cease to be effective pursuant to subparagraph (A) of this subdivision, keno may be operated under the agreements that were entered into pursuant to section 12-806c and in effect on May 27, 2021.

(b) Notwithstanding the provisions of section 3-6c, each amendment or new compact, or renewal thereof, entered into by the Governor with the Mashantucket Pequot Tribe and with the Mohegan Tribe of Indians of Connecticut pursuant to subsection (a) of this section shall be considered approved by the General Assembly under section 3-6c upon the Governor entering into such an agreement or new compact, or renewal thereof, without any further action required by the General Assembly.

(c) Any amendment or new compact entered into pursuant to this section shall be effective and final upon approval by the Secretary of the United States Department of Interior and publication in the Federal Register in accordance with federal law. If such approval is overturned by a court of competent jurisdiction in a final judgment, which is not appealable, (1) the provisions of sections 12-850 to 12-871, inclusive, and the amendments made to provisions of the general statutes pursuant to public act 21-23* shall cease to be effective, and (2) keno may be operated under the agreements that were entered into pursuant to section 12-806c and in effect on May 27, 2021.

(P.A. 21-23, S. 2.)

*Note: Public act 21-23 is entitled “An Act Concerning the Authorization, Licensing and Regulation of Online Casino Gaming, Retail and Online Sports Wagering, Fantasy Contests, Keno and Online Sale of Lottery Tickets.” (See Reference Table captioned “Public Acts of 2021” in Volume 3 which lists the sections amended, created or repealed by this act.)

History: P.A. 21-23 effective May 27, 2021.

Sec. 12-852. Master wagering licenses for Mashantucket Pequot Tribe and Mohegan Tribe of Indians of Connecticut. (a) The commissioner may issue a master wagering license to the Mashantucket Pequot Tribe, or an instrumentality or an affiliate wholly-owned by said tribe, and a master wagering license to the Mohegan Tribe of Indians of Connecticut, or an instrumentality or an affiliate wholly-owned by said tribe, and each master wagering license shall permit the licensee to operate one skin for online sports wagering within the state, operate one skin for online casino gaming within the state and operate fantasy contests within the state, pursuant to the provisions of sections 12-855 to 12-871, inclusive, as applicable, provided:

(1) Pursuant to section 12-851, (A) amendments to the Mashantucket Pequot procedures and to the Mashantucket Pequot memorandum of understanding with the Mashantucket Pequot Tribe, or a new compact with the Mashantucket Pequot Tribe, and (B) amendments to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut, or a new compact with, the Mohegan Tribe of Indians of Connecticut, are effective;

(2) The governing bodies of the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut each enact a resolution providing that (A) such tribe waives the defense of sovereign immunity with respect to any action against such tribe as a master wagering licensee, and against an instrumentality of or affiliate wholly-owned by such tribe that is acting on behalf of such tribe as a master wagering licensee, to compel compliance with the provisions of sections 12-850 to 12-871, inclusive, and, as applicable, sections 12-578f, 12-586f, 12-586g, 12-806c, 52-553, 52-554, 53-278a and 53-278g and the regulations promulgated by the state pursuant to said sections, applicable to the operation of online casino gaming, online sports wagering and fantasy contests outside of the reservation lands of the tribe; (B) if such tribe as master wagering licensee, or such tribe's instrumentality or wholly-owned affiliate that is acting on behalf of such tribe as master wagering licensee, fails to pay any fees or taxes due to the state under sections 12-850 to 12-871, inclusive, or, as applicable, sections 12-578f, 12-586f, 12-586g, 12-806c, 17a-713, 52-553, 52-554, 53-278a or 53-278g, the tribe waives the defense of sovereign immunity with respect to any action by the state against such tribe as master wagering licensee, or against an instrumentality of or affiliate wholly-owned by such tribe acting on behalf of such tribe as master wagering licensee, to permit the collection of such fees or taxes against such master wagering licensee from the operation of online casino gaming, online sports wagering and fantasy contests, as applicable, outside the reservation lands of the tribe; and (C) the venue for such action or claim shall be in the judicial district of Hartford; and

(3) The commissioner has determined that the requirements to issue a master wagering license to the Connecticut Lottery Corporation under section 12-853 have been met.

(b) The holder of a master wagering license issued under subsection (a) of this section may not operate online sports wagering, online casino gaming or fantasy contests until the regulations, including, but not limited to, emergency regulations, adopted by the commissioner pursuant to section 12-865 are effective.

(c) (1) A master wagering license issued pursuant to subsection (a) of this section shall expire (A) upon the expiration of any new compact or amendment, or renewal thereof, entered into pursuant to section 12-851, (B) if the tribe holding such license operates E-bingo machines at a casino on the tribe's reservation in this state at any time during the ten-year initial term of any amendment or new compact, as described in subdivision (3) of subsection (a) of section 12-851, or (C) if the holder of such master wagering license ceases to be a tribe, or an instrumentality of or an affiliate wholly-owned by a tribe.

(2) Upon the expiration of a master wagering license pursuant to subdivision (1) of this subsection, all other licenses associated with the expired master wagering license, including licenses for an online gaming operator or online service provider, and all corresponding key employee or occupational employee licenses, shall expire without the need for any further action by the department.

(d) The holder of a master wagering license issued under subsection (a) of this section may enter into an agreement with an online gaming operator for the provision of services for a skin authorized pursuant to this section or for fantasy contests, provided such online gaming operator is licensed by the department under section 12-857.

(P.A. 21-23, S. 3.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-853. Master wagering license for Connecticut Lottery Corporation. (a) If amendments to the Mashantucket Pequot procedures and to the Mashantucket Pequot memorandum of understanding with the Mashantucket Pequot Tribe, or a new compact with the Mashantucket Pequot Tribe, and amendments to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut, or a new compact with the Mohegan Tribe of Indians of Connecticut, are effective pursuant to section 12-851, amendments to the agreements entered into pursuant to section 12-806c are effective, and the commissioner has determined that the requirements to issue a master wagering license to the Mashantucket Pequot Tribe, or an instrumentality or an affiliate wholly-owned by said tribe, and a master wagering license to the Mohegan Tribe of Indians of Connecticut, or an instrumentality or an affiliate wholly-owned by said tribe, under section 12-852 have been met, the commissioner may issue a master wagering license to the Connecticut Lottery Corporation to permit the corporation to:

(1) Operate retail sports wagering, pursuant to the provisions of sections 12-854 to 12-865, inclusive, and section 12-867, as applicable, at not more than fifteen facilities located throughout the state, provided no such facility shall be located within twenty-five miles of either tribe's reservation;

(2) Operate one skin for online sports wagering outside the reservation of either tribe, pursuant to the provisions of sections 12-855 to 12-865, inclusive, and section 12-867, as applicable, and the corporation may enter into an agreement with an online gaming operator for the provision of services for such skin provided:

(A) Such online gaming operator is licensed by the commissioner;

(B) Such skin is not branded along with an entity or brand that operates a physical casino in any jurisdiction;

(C) Such skin does not directly market or promote a physical casino that operates in any jurisdiction, including through awarding of players' points or free play, promotions or other marketing activities;

(D) The corporation may contract with an entity that operates in a physical casino in any jurisdiction; and

(E) If the corporation contracts with an entity that is owned by an operator of a physical casino in any jurisdiction, the entity may not utilize any patron information collected as a result of such contractual agreement with such operator for purposes of marketing or any other purposes related to acquiring patrons;

(3) Operate fantasy contests, pursuant to the provisions of sections 12-855 to 12-865, inclusive, and section 12-868, as applicable;

(4) Operate keno (A) at retail through retail lottery sales agents of such corporation; and (B) through the corporation's Internet web site, online service or mobile application, provided:

(i) Drawings may occur not more frequently than once every three minutes; and

(ii) The state makes payments to the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut each in the amount of twelve and one-half per cent of the gross gaming revenue from keno; and

(5) Sell lottery tickets for lottery draw games through the corporation's Internet web site, online service or mobile application, provided:

(A) Lottery draw games for which tickets are sold through the program occur regularly and not more frequently than once every four minutes;

(B) The corporation submits to the commissioner official game rules for each lottery draw game for which the corporation seeks to sell tickets through the corporation's Internet web site, online service or mobile application, and the commissioner, or an independent third-party selected by the commissioner, approves, in writing, the official rules for such game prior to the sale of any tickets through the corporation's Internet web site, online service or mobile application for such game, provided all costs associated with obtaining approval by an independent third-party shall be paid by the corporation; and

(C) The results of lottery draw game drawings are displayed on the corporation's Internet web site, online service or mobile application, provided the lottery draw game drawings may not take place on the corporation's Internet web site, online service or mobile application.

(b) Upon issuance of the master wagering licenses under section 12-852, the commissioner may, as soon as practicable, issue a license under subsection (a) of this section to the Connecticut Lottery Corporation.

(c) The Connecticut Lottery Corporation shall not conduct any of the activities authorized by subsection (a) of this section until regulations, including, but not limited to, emergency regulations, adopted by the commissioner pursuant to section 12-865 are effective.

(d) After the corporation commences the sale of lottery tickets for lottery draw games through the corporation's Internet web site, online service or mobile application pursuant to subsection (a) of this section, the corporation: (1) May implement initiatives to promote the purchase of lottery tickets through lottery sales agents; (2) may implement initiatives to promote both the purchase of tickets for lottery draw games through the corporation's Internet web site, online service or mobile application and the purchase of lottery tickets through lottery sales agents; and (3) shall conduct a public awareness campaign to educate the public regarding responsible gambling and to inform the public of the programs available for the prevention, treatment and rehabilitation of compulsive gamblers in the state.

(e) (1) The authority of the Connecticut Lottery Corporation to conduct activities pursuant to a master wagering license issued under subsection (a) of this section shall expire upon the expiration of any new compact or amendment, or renewal thereof, entered into pursuant to section 12-851.

(2) Upon the expiration of a master wagering license pursuant to subdivision (1) of this subsection, all other licenses associated with the expired master wagering license, including licenses for an online gaming operator, online service provider or sports wagering retailer and all corresponding key and occupational employee licenses, shall expire without the need for any further action by the department.

(f) For purposes of this section, “gross gaming revenue from keno” means the total of all sums actually received by the Connecticut Lottery Corporation from operating keno both through lottery sales agents and through the corporation's Internet web site, online service or mobile application less the total of all sums paid as winnings to patrons and any federal excise tax applicable to such sums received, provided the total of all sums paid as winnings to such patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout.

(P.A. 21-23, S. 4.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-853a. Online lottery ticket sales fund. If the Connecticut Lottery Corporation is licensed to sell lottery tickets for lottery draw games through the corporation's Internet web site, an online service or a mobile application pursuant to section 12-853, the corporation shall establish an “online lottery ticket sales fund” into which all revenue from online lottery ticket sales shall be deposited, from which all payments and expenses of the corporation related to such sales shall be paid and from which transfers to the General Fund and the debt-free community college account, established in section 10a-174a, shall be made pursuant to subsection (d) of section 12-812.

(June Sp. Sess. P.A. 21-2, S. 69.)

History: June Sp. Sess. P.A. 21-2 effective July 1, 2021.

Sec. 12-854. Connecticut Lottery Corporation operation of retail sports wagering facilities. (a) Pursuant to a license issued under section 12-853, the Connecticut Lottery Corporation may operate not more than fifteen retail sports wagering facilities in the state. The corporation (1) shall develop new facilities, or enter into an agreement with a state entity or a business entity to act as a sports wagering retailer at facilities in the cities of Bridgeport and Hartford, and (2) may enter into one or more other agreements, which may include an agreement or agreements with the off-track betting system licensee to act as a sports wagering retailer.

(b) Prior to the corporation contracting with any person or entity to act as a sports wagering retailer, the person or entity shall obtain a sports wagering retailer license pursuant to section 12-856.

(c) Any retail sports wagering conducted under an agreement under subsection (a) of this section, shall be conducted pursuant to sections 12-855 to 12-865, inclusive.

(d) Any agreement to conduct retail sports wagering pursuant to subsection (a) of this section shall expire upon the expiration of any new compact or amendment, or renewal thereof, entered into pursuant to section 12-851.

(P.A. 21-23, S. 5.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-855. Online gaming service provider license. (a) No online gaming service provider shall provide goods or services to, or otherwise transact business related to Internet games or retail sports wagering with, a master wagering licensee or a licensed online gaming operator, sports wagering retailer or online gaming service provider in the state without a license from the department, if such a license is required under the provisions of subsection (b) of this section. An online gaming service provider shall apply for a license on a form and in a manner prescribed by the commissioner. Such license shall be renewed annually. The initial application fee for an online gaming service provider license shall be two thousand dollars and the annual renewal fee shall be two thousand dollars.

(b) The commissioner shall establish through regulations adopted pursuant to section 12-865, the criteria for determining when licensure as an online gaming service provider is required, based, in part, on whether the online gaming service provider (1) provides goods or services related to accepting wagers for Internet games or retail sports wagering, including, but not limited to, services to determine the location and identity of customers such as geolocation and “know your customer” services, payment processing and data provision, or (2) provides other goods or services that the department determines are used in, or are incidental to, Internet games or retail sports wagering, in a manner requiring licensing in order to contribute to the public confidence and trust in the credibility and integrity of the gaming industry in this state.

(c) The department shall transfer any licensing fee collected pursuant to subsection (a) of this section for an online gaming service provider that is affiliated with the holder of a master wagering license issued under section 12-852 to the State Sports Wagering and Online Gaming Regulatory Fund established under section 12-869.

(P.A. 21-23, S. 6.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-856. Sports wagering retailer license. (a) No sports wagering retailer shall provide services to the Connecticut Lottery Corporation under section 12-854 without a license from the department. A sports wagering retailer shall apply for a license on a form and in a manner prescribed by the commissioner. Such license shall be renewed annually. The initial application fee for a sports wagering retailer license shall be twenty thousand dollars and the annual renewal fee shall be twenty thousand dollars.

(b) The Connecticut Lottery Corporation, if licensed to operate retail sports wagering under section 12-853, shall not be required to obtain a sports wagering retailer license.

(P.A. 21-23, S. 7.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-857. Online gaming operator license. (a) No online gaming operator shall provide services to a master wagering licensee or a licensed sports wagering retailer in the state without a license from the department. An online gaming operator shall apply for a license on a form and in a manner prescribed by the commissioner. Such license shall be renewed annually. The initial license application fee shall be two hundred fifty thousand dollars and the annual renewal fee shall be one hundred thousand dollars.

(b) The department shall transfer any licensing fee collected pursuant to subsection (a) of this section for an online gaming operator that is affiliated with the holder of a master wagering license issued under section 12-852 to the State Sports Wagering and Online Gaming Regulatory Fund established under section 12-869.

(P.A. 21-23, S. 8.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-858. Occupational employee license. (a) An occupational employee, other than a key employee, of a master wagering licensee or a licensed online gaming operator, online gaming service provider or sports wagering retailer who will be directly or substantially involved in the operation of Internet games or retail sports wagering in a manner impacting the integrity of such gaming or wagering, data security, patron interaction, game or equipment testing or any other aspect of the gaming activity of a licensee that impacts the integrity of gaming, shall obtain an occupational employee license prior to commencing such employment. An occupational employee shall be deemed to be directly or substantially involved in the operation of Internet games or retail sports wagering in a manner impacting the integrity of such gaming or wagering if such employee: (1) Has the capability of affecting the outcome of a wager through deployment of code to production for any critical component of an electronic wagering platform; (2) (A) can deploy code to production, and (B) directly supervises individuals who have the capability of affecting the outcome of Internet games through deployment of code to production for other than read-only access or the equivalent access to any critical component of an electronic wagering platform; or (3) directly manages gaming operations or directly supervises an individual who directly manages gaming operations. For purposes of this subsection, a “critical component” means a component of an electronic wagering platform that records, stores, processes, shares, transmits or receives sensitive information, such as validation numbers and personal identification numbers, or which stores the results or the current state of a participant's wager for an Internet game.

(b) An occupational employee shall apply for an occupational employee license on a form and in a manner prescribed by the commissioner. Such license shall be renewed annually. The initial license application fee for an occupational employee licensee shall be fifty dollars and the annual renewal fee shall be fifty dollars. The initial license application fee shall be waived for any occupational employee who holds an active occupational gaming license issued by the department.

(c) The department shall transfer any licensing fee collected pursuant to subsection (a) of this section for an occupational employee of the holder of a master wagering license under section 12-852, or of an online gaming operator or an online gaming service provider that is affiliated with such a holder of a master wagering license, to the State Sports Wagering and Online Gaming Regulatory Fund established under section 12-869.

(P.A. 21-23, S. 9.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-859. Key employee license. (a) Each master wagering licensee or licensed online gaming operator, online gaming service provider or sports wagering retailer shall, on or before July 1, 2022, and annually thereafter, provide in writing, to the department a list of the key employees representing the licensee.

(b) A key employee of a master wagering licensee or licensed online gaming operator, online gaming service provider or sports wagering retailer shall obtain a key employee license from the department pursuant to this section. The commissioner may establish, through regulations adopted pursuant to section 12-865, criteria to exercise discretion to determine that an individual who is a key employee is not required to be licensed as a key employee in order to protect the integrity of gaming.

(c) (1) A key employee shall apply for a license on a form and in a manner prescribed by the commissioner. Such form may require the applicant to: (A) Submit to a state and national criminal history records check conducted in accordance with section 29-17a, which may include a financial history check if requested by the commissioner, to determine the character and fitness of the applicant for the license, (B) provide information related to other business affiliations, and (C) provide or allow the department to obtain such other information as the department determines is consistent with the requirements of this section in order to determine the fitness of the applicant to hold a license.

(2) In place of the criminal history records check described in subparagraph (A) of subdivision (1) of this subsection, the commissioner may accept from an applicant for an initial key employee license the submission of a third-party local and national criminal background check that includes a multistate and multijurisdictional criminal record locator or other similar commercial nation-wide database with validation, and other such background screening as the commissioner may require. Any such third-party criminal background check shall be conducted by a third-party consumer reporting agency or background screening company that is in compliance with the federal Fair Credit Reporting Act and accredited by the Professional Background Screening Association.

(d) A key employee license shall be renewed annually. The initial license application fee for a key employee licensee shall be two hundred dollars and the annual renewal fee shall be two hundred dollars. The initial application fee shall be waived for a key employee who holds an active occupational gaming license issued by the department.

(e) The department shall transfer any licensing fee collected pursuant to subsection (a) of this section for a key employee of the holder of a master wagering license under section 12-852, or of an online gaming operator or an online gaming service provider that is affiliated with such a holder of a master wagering license, to the State Sports Wagering and Online Gaming Regulatory Fund established under section 12-869.

(P.A. 21-23, S. 10.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-860. Key employee or occupational employee and sovereign immunity. Any individual who is a key employee or an occupational employee of a master wagering licensee described in section 12-852 or of an online gaming operator or online gaming service provider that is an Indian tribe or an instrumentality of or affiliate wholly-owned by an Indian tribe shall not be permitted to raise sovereign immunity as a defense to any action to enforce applicable provisions of sections 12-850 to 12-871, inclusive, or, as applicable, sections 12-578f, 12-586f, 12-586g, 12-806c, 52-553, 52-554, 53-278a or 53-278g and regulations adopted under said sections against such individual in his or her capacity as a key or occupational employee to the extent that such action may be brought against a key or occupational employee under any provision of the general statutes or the regulations of Connecticut state agencies.

(P.A. 21-23, S. 11.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-861. Investigations and hearings held by commissioner. Document retention. Subpoenas. Injunctions. (a) The commissioner may conduct investigations and hold hearings on any matter under the provisions of sections 12-852 to 12-871, inclusive. Each person or business entity issued a license pursuant to section 12-852 or 12-853, or sections 12-855 to 12-859, inclusive, and each person in charge, or having custody, of documents on behalf of a licensee, shall maintain such documents that are related to any operations under the provisions of sections 12-852 to 12-871, inclusive, in an auditable format for the current taxable year and the five preceding taxable years. Upon request, such person or business entity shall make such documents immediately available for inspection and copying by the commissioner and shall produce copies of such documents to the commissioner or the commissioner's authorized representative within two business days. Such documents shall be provided to the commissioner in electronic format, unless not commercially practical. In complying with the provisions of this subsection, no person shall use a foreign language, codes or symbols in the keeping of any required document.

(b) The commissioner may issue subpoenas, administer oaths, compel testimony and order the production of books, records and documents. If any person refuses to appear, to testify or to produce any book, record or document when so ordered, upon application of the commissioner, a judge of the Superior Court may make such order as may be appropriate to aid in the enforcement of this section.

(c) The Attorney General, at the request of the commissioner, is authorized to apply in the name of the state to the Superior Court for an order temporarily or permanently restraining and enjoining any person from violating any provision of sections 12-852 to 12-871, inclusive.

(d) The provisions of this section shall not apply to any gaming conducted on any reservation of the Mashantucket Pequot Tribe or the Mohegan Tribe of Indians of Connecticut under the federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq.

(P.A. 21-23, S. 12.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-862. Action by commissioner against licensee. (a) For sufficient cause found pursuant to subsection (b) of this section, the commissioner may suspend or revoke a license issued pursuant to section 12-852 or 12-853 or sections 12-855 to 12-859, inclusive, issue fines of not more than twenty-five thousand dollars per violation, accept an offer in compromise or refuse to grant or renew a license issued pursuant to section 12-852 or 12-853 or sections 12-855 to 12-859, inclusive, place the holder of a license issued pursuant to section 12-852 or 12-853 or sections 12-855 to 12-859, inclusive, on probation, place conditions on such license or take other actions permitted by the general statutes or the regulations of Connecticut state agencies.

(b) Any of the following may constitute sufficient cause for such action by the commissioner, including, but not limited to:

(1) Furnishing of false or fraudulent information in any license application or failure to comply with representations made in any application;

(2) A civil judgment against, or criminal conviction of, a licensee or key employee of an applicant or licensee;

(3) Discipline by, or a pending disciplinary action or an unresolved complaint against, an owner, key employee or applicant regarding any professional license or registration of any federal, state or local government;

(4) Denial, suspension or revocation of a license or registration, or the denial of a renewal of a license or registration, by any federal, state or local government or a foreign jurisdiction;

(5) False, misleading or deceptive representations to the public or the department;

(6) Involvement in a fraudulent or deceitful practice or transaction;

(7) Performance of negligent work that involves a substantial monetary loss or a significant lack of sound judgment;

(8) Permitting another person to use the licensee's license;

(9) Failure to properly license occupational employees, or failure to notify the department of a change in key employees or owners;

(10) An adverse administrative decision or delinquency assessment against the licensee from the Department of Revenue Services;

(11) Failure to cooperate or give information to the department, local law enforcement authorities or any other enforcement agency upon any matter related to the licensee's credential or gaming operations; or

(12) Failure to comply with any provision of sections 12-850 to 12-871, inclusive, corresponding regulations or any other provision of the general statutes that has an impact on the integrity of gaming in this state, including, but not limited to, failure of an online gaming operator who contracts with the Connecticut Lottery Corporation to abide by the conditions for operation set forth in subparagraph (B), (C) or (E) of subdivision (2) of subsection (a) of section 12-853.

(c) Upon refusal to issue or renew a license, the commissioner shall notify the applicant of the denial and of the applicant's right to request a hearing not later than ten days after the date of receipt of the notice of denial. If the applicant requests a hearing within such ten-day period, the commissioner shall give notice of the grounds for the commissioner's refusal and shall conduct a hearing concerning such refusal in accordance with the provisions of chapter 54 concerning contested cases. If the commissioner's denial of a license is sustained after such hearing, an applicant shall not apply for a new license issued pursuant to section 12-852 or 12-853 or sections 12-855 to 12-859, inclusive, for a period of at least one year after the date on which such denial was sustained.

(d) No person whose license has been revoked under this section may apply for another license issued pursuant to section 12-852 or 12-853 or sections 12-855 to 12-859, inclusive, for a period of at least one year after the date of such revocation.

(e) The voluntary surrender or failure to renew a license or registration shall not prevent the commissioner from suspending or revoking such license or registration or imposing other penalties permitted by this section.

(P.A. 21-23, S. 13.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-863. Requirements for conducting sports wagering, online casino gaming, and fantasy contests. Electronic wagering platform requirements. Independent review of operations. Advertising restrictions. (a)(1) An individual may only place a sports wager through retail sports wagering or online sports wagering outside of the reservations of the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut or place a wager through online casino gaming conducted outside of such reservations, if the wagering is authorized pursuant to sections 12-852 to 12-854, inclusive, and the individual (A) has attained the age of twenty-one, and (B) is physically present in the state when placing the wager, and, in the case of retail sports wagering, is physically present at a retail sports wagering facility in this state.

(2) An individual may only participate in a fantasy contest outside of the reservations of the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut if the contest is authorized pursuant to section 12-852 or 12-853, and the individual has attained the age of eighteen.

(b) Any electronic wagering platform used to (1) conduct online sports wagering or online casino gaming, (2) conduct keno through the Internet web site, an online service or a mobile application of the Connecticut Lottery Corporation, (3) conduct retail sports wagering, (4) sell lottery draw game tickets through the Internet web site, online service or mobile application of the Connecticut Lottery Corporation, or (5) conduct fantasy contests, shall be developed to:

(A) Verify that an individual (i) with an account for online sports wagering, online casino gaming or retail sports wagering is twenty-one years of age or older and is physically present in the state when placing a wager or, in the case of retail sports wagering, is physically present at a retail sports wagering facility, (ii) with an account to participate in keno or to purchase lottery draw game tickets is eighteen years of age or older and is physically present in the state when participating or purchasing such tickets, or (iii) with an account for fantasy contests is eighteen years of age or older;

(B) Provide a mechanism to prevent the unauthorized use of a wagering account; and

(C) Maintain the security of wagering, participation or purchasing data and other confidential information.

(c) A master wagering licensee and a licensed online gaming operator, online gaming service provider and sports wagering retailer shall each, where applicable based on the services provided:

(1) Prohibit an individual from establishing more than one account on each electronic wagering platform operated by the licensee;

(2) Limit a person to the use of only one debit card or only one credit card for an account, and place a monetary limit on the use of a credit card over a period of time;

(3) Allow a person to limit the amount of money that may be deposited into an account, and spent per day through an account;

(4) Provide that any money in an online account belongs solely to the owner of the account and may be withdrawn by the owner;

(5) Establish a voluntary self-exclusion process to allow a person to (A) exclude himself or herself from establishing an account, (B) exclude himself or herself from placing wagers through an account, or (C) limit the amount such person may spend using such an account;

(6) Provide responsible gambling and problem gambling information to participants; and

(7) Conspicuously display on each applicable Internet web site or mobile application:

(A) A link to a description of the provisions of this subsection;

(B) A link to responsible gambling information;

(C) A toll-free telephone number an individual may use to obtain information about problem gambling;

(D) A link to information about the voluntary self-exclusion process described in subdivision (5) of this subsection;

(E) A clear display or periodic pop-up message of the amount of time an individual has spent on the operator's Internet web site or mobile application;

(F) A means to initiate a break in play to discourage excessive play; and

(G) A clear display of the amount of money available to the individual in his or her account.

(d) At least every five years, each master wagering licensee shall be subject to an independent review of operations conducted pursuant to such license for responsible play, as assessed by industry standards and performed by a third party approved by the department, which review shall be paid for by the licensee.

(e) No advertisement of online casino gaming, online sports wagering or retail sports wagering may: (1) Depict an individual under twenty-one years of age, unless such individual is a professional athlete or a collegiate athlete who, if permitted by applicable law, is able to profit from the use of his or her name and likeness; or (2) be aimed exclusively or primarily at individuals under twenty-one years of age.

(P.A. 21-23, S. 14.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-864. Prohibited sports wagering. (a)(1) No athlete, coach or referee who takes part in a sporting event and no individual participating in e-sports shall place any sports wager on any sporting event in which such athlete, coach, referee or individual is participating.

(2) No athlete, coach or referee who takes part in a sporting event of a sports governing body; employee of a sports governing body holding a position of authority or influence sufficient to exert influence over participants in a sporting event; employee of a member team of a sports governing body holding a position of authority or influence sufficient to exert influence over participants in a sporting event; or personnel of any bargaining unit of a sports governing body's athletes or referees, shall place any wager on any sporting event overseen by such governing body.

(3) No owner with a direct or indirect legal or beneficial ownership interest of five per cent or more of a member team of a sports governing body shall place any wager on a sporting event in which such member team participates. Tribal membership in and of itself shall not constitute ownership for purposes of this section.

(b) In determining which individuals are prohibited from placing a wager under subsection (a) of this section, a master wagering licensee or a licensed online gaming operator, sports wagering retailer or online gaming service provider shall use reasonably available public information and exercise reasonable efforts to obtain information from the department or the relevant sports governing body regarding (1) owners with a direct or indirect legal or beneficial ownership interest of five per cent or more of a member team of a sports governing body; and (2) employees holding a position of authority or influence sufficient to exert influence over participants in sporting events.

(c) An individual shall only place a sports wager on such individual's behalf and shall not wager on the account of, or for, any other person. No master wagering licensee or a licensed online gaming operator, sports wagering retailer or online gaming service provider shall accept a wager from a person on the account of, or for, any other person.

(d) An officer, director, owner, key employee or occupational employee of a master wagering licensee or a licensed online gaming operator, sports wagering retailer or online gaming service provider or a family member who resides in the same household as such officer, director, owner, key employee or occupational employee, shall not place any wager on a sporting event with such master wagering licensee or its licensed sports wagering retailer or online gaming operator. Tribal membership in and of itself shall not constitute ownership for purposes of this section.

(e) A master wagering licensee or a licensed online gaming operator, sports wagering retailer or online gaming service provider shall not knowingly pay any winnings to a person who places a wager in violation of this section.

(f) A sports governing body may request that the commissioner restrict, limit or exclude wagering on a sporting event or events by providing notice in such form and manner as the commissioner prescribes. The commissioner may take such action as the commissioner deems necessary to ensure the integrity of wagering on such sporting event or events.

(P.A. 21-23, S. 15.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-865. Regulations. The commissioner shall adopt regulations, in accordance with the provisions of chapter 54, to the extent not prohibited by federal law or any gaming agreement or procedure entered into pursuant to the Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., to implement the provisions of sections 12-852 to 12-864, inclusive. Notwithstanding the requirements of subdivision (1) of subsection (g) of section 4-168, the commissioner may adopt such regulations as emergency regulations without making the finding required under subparagraph (A) of subdivision (1) of subsection (g) of section 4-168, provided the Governor approves the need for such emergency regulations, and the other requirements of subsection (g) of section 4-168 shall apply. Such regulations shall address:

(1) The operation of, and participation in, Internet games and retail sports wagering;

(2) Licensing requirements, including criteria for determining when licensure as (A) an online gaming service provider is required; and (B) a key employee is not necessary in order to protect the integrity of gaming;

(3) Designation of additional games that may be permitted as online casino gaming;

(4) Voluntary self-exclusion programs for Internet games and retail sports wagering;

(5) Technical standards, security features and testing applicable to gaming operations and systems, including electronic wagering platforms;

(6) Game procedure approval;

(7) Complaint resolution processes;

(8) Enforcement actions;

(9) Standards for age and location verification programs;

(10) Revenue auditing and reporting standards, which shall include a requirement that all payments be accompanied by a detailed supporting report on a form approved by the commissioner;

(11) Compliance reporting and disclosure requirements;

(12) Marketing and advertising standards; and

(13) Any other provisions deemed necessary by the commissioner to protect the public interest and the integrity of gaming.

(P.A. 21-23, S. 16.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-866. Payments to the state based on gross gaming revenue from online casino gaming. (a) A master wagering licensee, if licensed to operate online casino gaming pursuant to section 12-852, shall pay to the state for deposit in the General Fund: (1) Eighteen per cent of the gross gaming revenue from online casino gaming authorized under section 12-852 during the five-year period after the first issuance of a license for such gaming under section 12-852, or (2) twenty per cent of the gross gaming revenue from online casino gaming authorized under section 12-852 during the sixth and any succeeding year after the first issuance of a license for such gaming under section 12-852. Each such licensee shall commence payments under this subsection not later than the fifteenth day of the month following the month such licensee began the operation of online casino gaming under section 12-852, and shall make payments not later than the fifteenth day of each succeeding month, while such online casino gaming is conducted.

(b) For purposes of this section, “gross gaming revenue” means the total of all sums actually received by each such licensee from online casino gaming less the total of all sums paid as winnings to online casino gaming patrons and any federal excise tax applicable to such sums received, provided:

(1) The total of all sums paid as winnings to such patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout; and

(2) Coupons or credits that are issued to patrons for the sole purpose of playing online casino games and are linked to online casino gaming in a documented way as part of a promotional program and actually played by the patrons shall not be included in the calculation of gross gaming revenue from online casino gaming, provided if the aggregate amount of such coupons and credits played during a calendar month (A) exceeds twenty-five per cent of the total amount of gross gaming revenue for that month, for any month during the first year that the operation of online casino gaming is permitted, (B) exceeds twenty per cent of the total amount of gross gaming revenue for that month, for any month during the second year that the operation of online casino gaming is permitted, or (C) exceeds fifteen per cent of the total amount of gross gaming revenue for that month, for any month during the third or succeeding year that the operation of online casino gaming is permitted, then the applicable excess amount of coupons or credits used in such calendar month shall be included in the calculation of gross gaming revenue. For the purpose of this subdivision, the year of operation of online casino gaming shall be measured from the date that the first master wagering license is issued pursuant to section 12-852 or the date that regulations, including, but not limited to, emergency regulations, are adopted and effective pursuant to section 12-865, whichever is later.

(P.A. 21-23, S. 17.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-867. Payments to the state based on gross gaming revenue from online or retail sports wagering. (a) A master wagering licensee, if licensed to operate online sports wagering or retail sports wagering pursuant to section 12-852 or 12-853, shall pay to the state for deposit in the General Fund: Thirteen and three-quarters per cent of the gross gaming revenue from online or retail sports wagering authorized under section 12-852 or 12-853, as applicable. Each such licensee shall commence payments under this subsection not later than the fifteenth day of the month following the month that the operation of online or retail sports wagering commences under section 12-852 or 12-853, as applicable, and shall make payments not later than the fifteenth day of each succeeding month, while such retail or online sports wagering is conducted.

(b) For purposes of this section, “gross gaming revenue” means the total of all sums actually received by each such licensee from online sports wagering or retail sports wagering, as applicable, less the total of all sums paid as winnings to sports wagering patrons and any federal excise tax applicable to such sums received, provided:

(1) The total of all sums paid as winnings to such patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout.

(2) Coupons or credits that are issued to patrons for the sole purpose of sports wagering and are linked to sports wagering in a documented way as part of a promotional program and actually played by the patrons shall not be included in the calculation of gross gaming revenue from sports wagering, provided if the aggregate amount of such coupons and credits played during a calendar month (A) exceeds twenty-five per cent of the total amount of gross gaming revenue for that month, for any month during the first year that the operation of sports wagering is permitted, (B) exceeds twenty per cent of the total amount of gross gaming revenue for that month, for any month during the second year that the operation of sports wagering is permitted, or (C) exceeds fifteen per cent of the total amount of gross gaming revenue for that month, for any month during the third or succeeding year that the operation of sports wagering is permitted, then the applicable excess amount of coupons or credits used in such calendar month shall be included in the calculation of gross gaming revenue. For the purpose of this subdivision, the year of operation of sports wagering shall be measured from the date that the first master wagering license is issued pursuant to section 12-852 or 12-853 or the date that regulations, including, but not limited to, emergency regulations, are adopted and effective pursuant to section 12-865, whichever is later.

(P.A. 21-23, S. 18.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-868. Payments to the state based on gross receipts from fantasy contests. (a) A master wagering licensee, if licensed to operate fantasy contests pursuant to section 12-852 or 12-853, shall pay to the state for deposit in the General Fund: Thirteen and three-quarters per cent of the gross receipts from fantasy contests. Each such licensee shall commence payments under this subsection not later than the fifteenth day of the month following the month that such licensee commences operation of fantasy contests, and shall make payments not later than the fifteenth day of each succeeding month, while such fantasy contests are conducted.

(b) For purposes of this section, (1) “gross receipts” means the amount equal to the total of all entry fees that a master wagering licensee collects from individuals who participate in a fantasy contest, less the total of all sums paid out as prizes to all fantasy contest participants, multiplied by the location percentage; and (2) “location percentage” means the percentage rounded to the nearest tenth of a per cent of the total of entry fees collected from fantasy contest participants located in the state, divided by the total of entry fees collected from all fantasy contest participants.

(P.A. 21-23, S. 19.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-869. Assessment of costs to regulate online sports wagering or online casino gaming. State Sports Wagering and Online Gaming Regulatory Fund. (a)(1) At the commencement of operating online sports wagering or online casino gaming pursuant to section 12-852 in any fiscal year, and on or before September thirtieth in each fiscal year thereafter that such wagering and gaming is conducted, the commissioner shall estimate and assess, after consultation with each holder of a master wagering license under section 12-852, the reasonable and necessary costs that will be incurred by the department to regulate the operation of such wagering or gaming under sections 12-852 and 12-855 to 12-865, inclusive, by each such licensee, (A) in the next fiscal year; and (B) in the case of the initial fiscal year of operating such wagering and gaming, in the current fiscal year.

(2) The estimated costs under subdivision (1) of this subsection shall not exceed the estimate of expenditure requirements transmitted by the commissioner pursuant to section 4-77. The assessment for any fiscal year shall be: (A) Reduced pro rata by the amount of any surplus from the assessment of the prior fiscal year, which shall be maintained in accordance with subsection (d) of this section, or (B) increased pro rata by the amount of any deficit from the assessment of the prior fiscal year.

(3) The assessment under subdivision (1) of this subsection for the holder of a master wagering license issued under section 12-852 shall be reduced by the amount of any licensing fees paid to the department for a license for an online gaming operator, an online gaming service provider and any corresponding key employee and occupational employee affiliated with such holder of a master wagering license during the prior fiscal year.

(b) Each holder of a master wagering license under section 12-852 shall pay to the commissioner the amount assessed to such licensee pursuant to subsection (a) of this section not later than the date specified by the commissioner for payment, provided such date is not less than thirty days from the date of such assessment and no payment shall be due prior to the commencement of wagering and gaming operations by such licensee. The commissioner shall remit to the State Treasurer all funds received pursuant to this section.

(c) (1) There is established a fund to be known as the “State Sports Wagering and Online Gaming Regulatory Fund”. The fund shall contain any moneys required or permitted to be deposited in the fund, including licensing fees transferred by the department under the provisions of sections 12-855 and 12-857 to 12-859, inclusive, and shall be held by the Treasurer separate and apart from all other moneys, funds and accounts. Any balance remaining in said fund at the end of any fiscal year shall be carried forward in said fund for the fiscal year next succeeding. Moneys in the fund shall be expended by the Treasurer for the purposes of paying the costs incurred by the department to regulate online sports wagering and online casino gaming authorized under section 12-852.

(2) The Treasurer shall deposit all funds received pursuant to subsection (b) of this section in the State Sports Wagering and Online Gaming Regulatory Fund.

(d) On or before September thirtieth, annually, the Comptroller shall calculate the actual reasonable and necessary costs incurred by the department to regulate such online sports wagering and online casino gaming authorized under section 12-852 during the prior fiscal year. The Treasurer shall set aside amounts received pursuant to subsection (b) of this section in excess of such actual costs. Such excess amounts shall be considered a surplus for the purposes of subsection (a) of this section.

(e) If the holder of a master wagering license under section 12-852 is aggrieved by an assessment under the provisions of this section, the licensee may request a hearing before the commissioner not later than thirty days after such assessment. The commissioner shall hold such hearing in accordance with the provisions of chapter 54 not later than thirty days after receiving such request, and the decision of the commissioner may be appealed in accordance with the provisions of section 4-183.

(P.A. 21-23, S. 20.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-870. Payments toward minimum contribution pursuant to Mashantucket Pequot memorandum of understanding and Mohegan memorandum of understanding. (a) During the five-year period commencing on the date the first license is issued pursuant to section 12-852, (1) any payment to the state made by the Mashantucket Pequot Tribe, or a master wagering licensee on behalf of said tribe, under section 12-866 or 12-867 shall count toward the calculation of the minimum contribution for said tribe pursuant to the Mashantucket Pequot memorandum of understanding, and (2) any payment to the state made by the Mohegan Tribe of Indians of Connecticut, or a master wagering licensee on behalf of said tribe, under section 12-866 or 12-867 shall count toward the calculation of the minimum contribution for said tribe pursuant to the Mohegan memorandum of understanding.

(b) After the completion of the five-year period described in subsection (a) of this section, (1) the obligation of the Mashantucket Pequot Tribe to meet the minimum contribution shall continue as provided for in the Mashantucket Pequot memorandum of understanding, and the obligation of the Mohegan Tribe of Indians of Connecticut to meet the minimum contribution shall continue as provided for in the Mohegan memorandum of understanding, subject to any agreements entered into between the state and a tribe regarding the sources of payments that may be used to satisfy such minimum contribution, and (2) the state shall meet and confer in good faith with each tribe concerning which payments made to the state by each tribe should count toward each tribe's obligation.

(P.A. 21-23, S. 21.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-871. Contributions to support problem gambling programs. Each holder of a master wagering license under section 12-852 shall contribute, in each fiscal year that such holder has such license, five hundred thousand dollars to support problem gambling programs in this state, any portion of which may be made to the state for deposit in the chronic gamblers treatment rehabilitation account created pursuant to section 17a-713 or to a nonprofit entity or nonprofit entities with programs to support problem gambling. Such contribution shall be reduced pro rata in any fiscal year that the licensee did not hold such license for the entirety of the fiscal year. Each licensee shall submit to the department, on an annual basis and as a condition of continued licensure, information regarding the recipients of the contribution required by this section.

(P.A. 21-23, S. 22.)

History: P.A. 21-23 effective July 1, 2021.

Sec. 12-872. Nonseverability. Notwithstanding the provisions of section 1-3, if any provision of sections 12-850 to 12-871, inclusive, any amendment made to the provisions of the general statutes pursuant to public act 21-23, or any provision of an amendment or new compact entered into pursuant to section 12-851 is held invalid by a court of competent jurisdiction in a final judgment which is not appealable, (1) the provisions of sections 12-850 to 12-871, inclusive, shall cease to be effective, (2) the amendments made to the provisions of the sections of the general statutes pursuant to public act 21-23 shall be inoperative, and (3) keno may be operated under the agreements that were entered into pursuant to section 12-806c and in effect on April 1, 2021.

(P.A. 21-23, S. 44.)

History: P.A. 21-23 effective July 1, 2021.