Regulatory Report: 39 gambling-related bills in progress in U.S. legislatures during September

Wednesday, October 16, 2024 6:00 PM
  • Commercial Casinos
  • Igaming
  • Sports Betting
  • Debra Jobes — Gaming Division Lead, Regology

It was another busy month in the California State Legislature as 16 gambling related bills became law as they went into recess on September 1, 2024. At that point in time there were already 9 other state legislatures in recess. However, the state legislatures in Massachusetts, Michigan, New Jersey, and Pennsylvania have remained in session and the Delaware General Assembly is currently in special session until the end of 2024. For the month of September 2024, there were a total of 39 gambling-related bills that went through various stages of the lawmaking process.1 This report will focus primarily on 3 bills that were recently introduced in the US Congress and how they may impact the gambling industry. Also featured are recent bills that became law in California, Delaware, Massachusetts, New Jersey, and New York.2


US Federal Legislation Recently Introduced

Ban Gambling on Elections Act of 2024:
The purpose of this bill is to amend the Commodity Exchange Act, Section 5c(c)(5), to include a new provision that prohibits any agreement, contract, transaction, or swap related to political elections or contests from being listed or made available for clearing or trading on a registered entity. This prohibition covers any index, measure, value, data related to political elections or contests, or any contingency based on them.
Note: 118 S. 5100 (9/18/2024) Introduced; Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

Supporting Affordability and Fairness with Every Bet Act (also known as the SAFE Bet Act):
These two proposed bills aim to establish minimum Federal standards for sports betting, including regulations on accepting sports wagers, State sports wagering programs, public health considerations, and general provisions related to State and Tribal authority. These identical bills are both broken down into three separate titles.
Note: Supporting Affordability and Fairness with Every Bet Act, 118 S. 5057 (9/16/2024) Introduced; Read twice and referred to the Committee on the Judiciary.
Note: SAFE Bet Act, 118 S. 9590 (9/12/2024) Introduced; Referred to the Committee on Energy and Commerce, and in addition to the Committee on Natural Resources.

Title I – Minimum Federal Standards for Sports Betting. The sections under this Title cover general prohibitions on sports wagering such as accepting sports wagers unless in compliance with State law or State social gambling law. Furthermore, the Attorney General would be allowed to bring civil actions and impose civil penalties for violations. Other topics covered in these sections include State sports wagering programs and standards. The application process for States to administer a sports wagering program are outlined and specifications are given for approval criteria and renewal procedures. The standards for State sports wagering programs include regulatory entities, permissible sports wagering, consumer protections, data security, and enforcement measures.

Title II – Public Health in Sports Betting. The first section under this Title covers annual nationwide surveys on online sports betting. This requirement would direct the Secretary of Health to conduct surveys on problem gambling and gambling-related harm. In other sections of this title, a national self-exclusion list would be established for individuals to restrict themselves from placing sports wagers. A mandated report conducted by the Surgeon General on public health challenges related to sports betting would also be required with ongoing enhanced surveillance and tracking of gambling addiction.

Title III — General Provisions. The first section under this title seeks to clarify the relation to the Indian Gaming Regulatory Act, State and Tribal authority, and taxation of sports wagering. The second section on severability ensures that if any provision of the Act is held invalid, the remaining provisions will continue to be enforced.

Win, Lose, or Draw: Legislation that Became Law

Advertising:
California – AB 2863 will update and strengthen the laws surrounding automatic renewal offers and continuous service offers made by businesses to consumers in California. This law introduces new requirements for obtaining consumer consent, maintaining verification of consent, providing annual reminders, and ensuring cancellation or termination options are available in the same medium as the initial transaction. This legal document is an Act to amend CA Bus & Prof Code §§ 17601 and 17602. The Act redefines the meaning of “automatic renewal” and “continuous service” to include a provision of a contract containing those subscriptions or purchasing agreements and specify that those subscriptions or purchasing agreements may be free or paid. It would also introduce several new requirements for businesses. The provisions of this Act apply to contracts entered into, amended, or extended on or after January 1, 2025. Note: AB 2863 (9/24/2024) Became Law.

Charitable Organizations:
Delaware
HB 389 is an Act to amend 28 DE Code, ch. 15 relating to charitable gaming. This Act establishes an annual raffle license that allows organizations to hold up to 20 raffle events per year. It introduces notice requirements for raffle events at least 7 days prior to the event, but does not require approval for each event. Additionally, it extends the reporting period from 30 to 90 days for organizations with an annual raffle license. The organization has 90 days from the date of awarding the prize to submit a written report to the Board. The report must include the name and address of each person to whom a prize was awarded, the gross receipts derived from selling raffle tickets, and the total expenses incurred for the raffle.
Note: HB 389 (9/23/2024) Became Law.

HS1 for HB 389 is a substitute Act that introduces several changes to the original version. One of the key differences is the voting requirement which clarifies that a three-fifths majority vote is required for the passage of this Act, as mandated by the Delaware Constitution, art. VIII, § 11. Another difference from the original version is the annual raffle license fee is increased from $100 to $300. Reporting requirements following a raffle event are also further refined to include all the information required in a report after a game under 28 DE Code, § 1521. The deadline for filing a report after a game, specifically a raffle event conducted by a license holder, is extended from 30 to 60 days. The Act will take effect 6 months after its enactment into law. Note: HS 1 for HB 389 (9/19/2024) Became Law.

Employee Licensing:
California – SB 931 amends CA Bus & Prof Code § 19913 related to gambling and specifically addresses the process of suspending a person’s work permit in the gambling industry. The old law required certain employees of a gambling enterprise to apply for and obtain a work permit from the commission or from a city, county, or both entities. It also allowed the commission to issue an order suspending a person’s work permit with a hearing required within 30 calendar days of the date of service of the suspension. The amended law  changes the timeframe for the hearing 27 calendar days of the date of service of the suspension. Note: SB 931 (9/20/2024) Became Law.

Fantasy Contests:
Massachusetts – HB 4799 is an appropriation Act for the fiscal year 2024. The Act consists of several sections that outline the appropriations and provisions for various government departments and agencies. However, in Section 8 of this Act, the Mass. Gen. Laws, ch. 23N §14 modifies the excise tax rates for sports wagering and fantasy contests. Note: HB 4799 (9/16/2024) Became Law.

Gambling Control Commission:
California – AB 224 amends CA Bus & Prof Code § 19817 to increase the membership of the Gaming Policy Advisory Committee from 10 to 12 members. The additional members must include representatives from academia and the Bureau of Gambling Control. Furthermore, the Act requires the executive director of the Gambling Control Commission to convene the committee at least twice every calendar year, rather than convening it “from time to time” as stated in the existing law. The purpose of the committee remains to discuss gambling regulatory policy and other relevant gambling-related issues, providing advisory recommendations to the Gambling Control Commission. Note: AB 224 (9/20/2024) Became Law.

Horse Racing:
California
At first glance, AB 179 is designated as an appropriations Act and may be overlooked by gambling industry compliance professionals. However, on closer analysis, § 2 specifically establishes a “Horse Racing Law”. The law authorizes the California Horse Racing Board to issue a license to any person to conduct a horse racing meeting at the track specified in the written application submitted for that license. It also requires a person who is not required to obtain one of those licenses but who participates in, or has anything to do with, the racing of horses to be licensed by the board under a separate license. Furthermore, the law requires the board to submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all employees, prospective employees, and contractors. It also authorizes the board’s chief of licensing and enforcement to investigate the criminal history of those persons in order to make a final determination of a person’s fitness to perform duties. For the specific purpose of licensing track operators, a “person” is defined as “any officer, director, or partner, or any individual who holds 5% or more of outstanding shares, of a racing association.” Note: AB 179 (9/30/2024) Became Law.

AB 1768 and AB 1946 are companion Acts that amend CA Bus & Prof Code § 19596.2, specifically related to horse racing in California. The amendment focuses on the distribution of audiovisual signals and acceptance of wagers on out-of-state thoroughbred races conducted in the United States during a race meeting. This Act will exempt races imported as part of the race card of the Pegasus World Cup from the limitation of 50 imported races per day. This means that the thoroughbred racing association or fair would be allowed to distribute the audiovisual signal and accept wagers on these specific races without being subject to the 50-race limitation.
Note: AB 1768 (9/22/2024) Became Law.
Note: AB 1946 (9/22/2024) Became Law..

AB 3261 is similar to AB 1768 and AB 1946 and amends CA Bus & Prof Code § 19596.2 but also includes § 19596.4 in relation to horse racing. This law also focuses on the distribution of audiovisual signals and acceptance of wagers on out-of-state thoroughbred races conducted in the United States. However, the amendment increases the limit on the number of imported thoroughbred races per day and adjusts the time restrictions for accepting wagers on out-of-state races based on the total number of imported races. Note: AB 3261 (9/22/2024) Became Law.

New Jersey – AB 2610 provides continued financial support to the horse racing industry in New Jersey by extending the annual purse subsidies through the State fiscal year 2029 and ensuring transparency and accountability in the use of these funds. The Act appropriates $20 million annually from the General Fund of the State for these subsidies. The subsidies will be allocated equally between the thoroughbred industry and the standardbred industry. For the thoroughbred industry, the entire amount will be allocated to Monmouth Park overnight purses. For the standardbred industry, the allocations will be distributed as follows: 60% to Meadowlands overnight purses, 16% to Freehold overnight purses, 12% to the New Jersey Sire Stakes purses, 6% to purse bonuses for New Jersey sired horses, and 6% for breeders awards purses. In order to continue receiving the purse subsidies, the recipients of the funds must submit an annual report to the Governor, the Legislature, and the New Jersey Racing Commission. This report must detail how the funds were used and the amounts allocated for various purposes. It must also include information on the impact of the subsidies on the racing industry, such as the amount bet, the number of horses in races, and the number of New Jersey bred horses winning races. The Legislature has the authority to review these reports and decide whether to appropriate the funds based on their assessment of the impact on the racing industry. Note: AB 2610 (9/12/2024) Became Law.

New York – SB 8441 amends the existing law related to the New York state thoroughbred breeding and development fund. The amendment primarily focuses on the effectiveness of the law, including its expiration and repeal after a specified period and the notification requirement for the operation of a video lottery facility. The Act takes effect immediately but will expire and be repealed fourteen years after the commencement of the operation of a video lottery facility at Aqueduct racetrack. Additionally, the Act requires the chair of the New York state thoroughbred breeding and development fund to notify the legislative drafting commission when the operation of a video lottery facility at Aqueduct racetrack begins. This notification is necessary for the commission to maintain an accurate and timely effective database of the official text of the laws of the state of New York. Furthermore, the Act authorizes and directs the addition, amendment, and/or repeal of any rules or regulations necessary for the implementation of this act to be made and completed on or before the effective date of the Act. Note: SB 8441 (9/20/2024) Became Law.

Lottery:
California – SB 1523 will amend CA Penal Code § 328, specifically related to gambling. The Act clarifies that it is not unlawful to place or operate communications to and from equipment located within the State of California associated with the hosting of lottery games authorized by another state or jurisdiction, provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed. The Act also emphasizes that this section does not authorize any advertisement within California relating to lotteries or the sale or resale of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state. Note: SB 1523 (9/22/2024) Became Law.

Tribal Gaming:
California
SB 549, known as the “Tribal Nations Access to Justice Act”, focuses on providing a legal framework for resolving disputes related to gaming activities between California Indian tribes, card clubs, and third-party providers within the state. This law will amend the CA Bus & Prof Code § 19804 and add CA Govt Code, Title 16, Chapter 2, specifically concerning gaming regulations in California. The law allows California Indian tribes to bring actions against licensed California card clubs and third-party proposition player services providers to seek a declaration on the legality of controlled games. It permits injunctive relief under certain conditions. Legal Proceedings and Court Procedures include: Note: Tribal Nations Access to Justice Act – AB 549 (9/28/2024) Became Law.

  • Actions must be filed by April 1, 2025.
  • The review of challenges is to be conducted de novo.
  • No claims for money damages, penalties, or attorney’s fees are allowed.
  • Prohibits actions against the state and restricts courts from issuing preliminary injunctions under certain circumstances.
  • The court may issue binding declarations and injunctions.
  • Any review of controlled games violating state law shall be conducted de novo.
  • Multiple actions will be consolidated to avoid inconsistent declarations.
  • Parties entitled to intervene include the state, tribes, gambling enterprises, and third-party providers.
  • Court orders declaring games illegal do not take effect for 60 days.
  • Severability: The Act states that if any provision is found invalid, the remaining provisions will remain in force.

AB 2656 is an Act that adds CA Govt Code § 12012.114 and ratifies a tribal-state gaming compact between the State of California and the Table Mountain Rancheria, executed on November 1, 2023. It also declares that certain actions related to the compact are not considered projects under the California Environmental Quality Act (CEQA) in deference to tribal sovereignty. The Act is deemed an urgency statute and takes effect immediately to enhance the economic development, stability, and self-sufficiency of the Table Mountain Rancheria and protect the interests of the tribe, its members, surrounding communities, and the public of California. Note: AB 2656 (9/20/2024) Became Law.

AB-3276 is an Act that adds CA Govt Code § 12012.115 to ratify a tribal-state gaming compact between the State of California and the Tule River Indian Tribe of California, executed on June 25, 2024. The compact is in accordance with the federal Indian Gaming Regulatory Act of 1988. The Act also declares that certain actions related to the compact are not considered projects under the California Environmental Quality Act (CEQA) in deference to tribal sovereignty. AB-3276 is an urgency statute that took effect immediately to enhance the economic development, stability, and self-sufficiency of the Tule River Indian Tribe of California and protect the interests of the tribe and its members, surrounding communities, and the California public. Note: AB 3276 (9/20/2024) Became Law.

AB 2032 is an Act that adds CA Govt Code § 12012.113 and ratifies a tribal-state gaming compact between the State of California and the Big Sandy Rancheria of Western Mono Indians of California. The compact was executed on January 16, 2024. The Act also declares that certain actions related to the compact are not considered projects under the California Environmental Quality Act (CEQA) in deference to tribal sovereignty. The Act is an urgency statute and takes effect immediately. Note: AB 2032 (9/20/2024) Became Law.

AB 3235 is an Act that amends CA Penal Code § 11102.1 and 11102.2 and will modify the requirements and criteria for certification and confirmation of individuals involved in rolling fingerprint impressions for non-law-enforcement purposes and custodians of records. Specifically mentioned in this Act is an exemption for “employees of a tribal gaming agency or a tribal gaming operation, provided that the fingerprints are rolled and submitted to the Department of Justice for purposes of compliance with a tribal-state compact.” This exemption is allowed if the employee has received training pertaining to applicant fingerprint rolling and has undergone a criminal offender record information background investigation. Note: AB 3235 (9/14/2024) Became Law.

1Regology database statistics filtered by jurisdiction [US federal/50 states], status [applicable bills only], and time period [September  1 – 30, 2024].
2Bills included in this category are reported “active”, even though the state legislature may have adjourned during this time period. Regology uses the official status reported by each individual state legislature according to their policies and procedures.