2018 -- H 7825

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LC005058

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO SPORTS, RACING AND ATHLETICS

     

     Introduced By: Representatives Nunes, and Marszalkowski

     Date Introduced: February 28, 2018

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 41-1 of the General Laws entitled "Division of Racing and

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Athletics" is hereby amended by adding thereto the following section:

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     41-1-4. Online and fantasy sports - Authorization - Regulation.

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     (a) The division of racing and athletics ("the division") is hereby authorized and directed

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to implement online games of skill, including, but not limited to, fantasy sports, so-called,

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including, but not limited to, fantasy football and baseball, and other games of skill, subject to the

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provisions of, and preempted and superseded by, any applicable federal law.

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     (b) The division is authorized to sell prepaid play cards for fantasy sports, subject to

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proof of age verification, and may be sold by any agent licensed to sell lottery tickets pursuant to

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the provisions of chapter 61 of title 42. The cards may be recharged and resold by any authorized

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agent; provided, the prepaid cards shall not be deemed to be gambling but are deemed games of

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skill.

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     (c) Purchase of online products shall require a secure website to access any customer

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account by entering a unique password for each online purchaser. Geo-location tools shall be

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employed by any platform provider authorized under this section, to ensure that a player is a

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resident of the state.

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     (d)(1) The division shall develop a request for proposals and use the competitive sealed

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bidding procedures established pursuant to chapter 2 of title 37 to solicit competitive bids from

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private vendors to develop any online platform, and such platform shall have maximum flexibility

 

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to allow for changes in technology and changes in consumer behavior. All providers shall

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implement and employ a responsible gaming policy that shall be approved by the division.

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     (2) Basic qualifications for consideration in selecting and maintaining both a provider and

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an online platform shall include the following:

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     (i) Experience in platform development;

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     (ii) Experience in developing gaming platforms;

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     (iii) Experience in website security, including an ability to address all key security areas

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such as fraud detection, hacking, and prevention of distributed denial of service;

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     (iv) Demonstration of good character, honesty, and integrity;

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     (v) Ability to maintain and grow the site, based on actual experience and demand growth;

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and

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     (vi) A history of working cooperatively with clients to produce systems that provide the

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maximum flexibility for and benefit to the client rather than the vendor.

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     (3) All vendors shall provide a "free-play site", so-called, developed concurrently with

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the gaming site. Any successful bidder shall be compensated based on a percentage of sales

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established by the division. The successful bidder shall directly or through a subcontracting

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arrangement, develop a loyalty program that recognizes and rewards regular lottery customers

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who play both online and traditional lottery games of chance.

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     (e) All revenues received from sales authorized by this section shall be deposited into the

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general fund, and shall be distributed as aid to the cities and towns, subject to appropriation.

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     (f) Any private vendor wishing to operate or offer a similar service in the state shall be

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required to apply to the division for issuance of a private vendor fantasy sports license. No private

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vendor shall operate or offer a similar service in the state without first obtaining a license. The

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division shall establish an appropriate fee schedule for each license.

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     (g) The director of the division is authorized to promulgate rules and regulations to

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effectuate the provisions of this chapter.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO SPORTS, RACING AND ATHLETICS

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     This act would authorize the division of racing and athletics within the department of

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business regulation to implement online games of skill, including so-called fantasy sports. The

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division would develop a request for proposals utilizing the competitive sealed bid process that

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solicits competitive bids from private vendors to develop any such online platform and such

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platform shall maximize flexibility to allow for changes in technology and changes in consumer

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behavior.

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     This act would take effect upon passage.

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