Gaming & Gambling - August 2023 Regulatory Report

Two state legislatures, Texas and Virginia, have called special sessions this month. The historic impeachment trial of suspended Texas Attorney General, Ken Paxton, is underway in the Texas Senate along with budget debates in the Virginia General Assembly. There are eight state legislatures who continue with regular sessions this month: California, Massachusetts, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, and Wisconsin. During the month of August 2023, a total number of 9 gambling-related bills went through various stages of the lawmaking process. This report will highlight bills that became law and some that have shown movement during this month.

Hot Topic of the Month: New York State Gaming Commission Proposed Rules

If your gambling-related business operates in New York, it’s important to be aware of several proposed rule changes from the New York State Gaming Commission (NYSGC) that were issued in August 2023. These five new proposed rule changes will impact various sections of Title 9 of the New York Code of Rules and Regulations (NYCRR), affecting compliance programs for businesses involved in thoroughbred racing, lottery services, sports wagering advertising, and interactive fantasy sports. Public comments will be accepted for 60 days following publication:

1. Fantasy Sports: A new Chapter VI, Part 5600-5613, titled Interactive Fantasy Sports, will be added to Title 9, Subtitle T of the NYCRR. Published on August 2, 2023.
2. Sports Wagering: Amendments to regulate advertising, marketing, and promotions related to sports wagering in sections 5329 and newly added sections 5329.37 and 5330.45 of Title 9 NYCRR. Published on August 2, 2023.
3. Horse Racing: A consensus rulemaking aims to improve the claiming process in Thoroughbred Racing by amending sections 4038.1, 4038.3, and 4038.4 of Title 9 NYCRR. Published on August 23, 2023.
4. Lottery: Proposed amendments to section 5002.11 of Title 9 NYCRR are intended to defray administrative expenses associated with a Lottery Prize Assignment Processing Fee. Published on August 23, 2023.
5. Lottery: Amendments to purchase location requirements for lottery couriers in section 5014.7 of Title 9 NYCRR to ensure proper sale of lottery tickets for educational revenue generation. Published on August 30, 2023.

Win, Lose, or Draw: Recently Passed Legislation

1. Casino:
   • Illinois: The Gaming Occupation License Standard Act was amended to include emergency rules for occupational licenses, expanding eligibility to those with felony convictions (SB 1462, 8/11/2023).
   • New Jersey: Legislation modifying employee health benefits under certain economic development programs was enacted, potentially affecting casino-related projects (AB 5286, 8/16/2023).
2. Gambling Treatment:
   • Delaware: An amendment to the Delaware Code now includes gambling disorders under the definition of “mental health condition” for behavioral health crisis intervention services (HB 160, HS 1, HS 2, 8/18/2023).

On the Clock and In-Play: Movement on Active Bills

1. Casino:
   • California: Revisions to key employee regulations in gambling establishments were passed, introducing a new owner license valid for two years and expanding the roles of employees with work permits (AB 1271, 8/17/2023).
2. Horse Racing:
   • California: Legislation passed allowing the operation of a satellite wagering facility at a fair in Stanislaus County under the same conditions as those in Kern and Shasta counties (AB 1074, 8/17/2023).

New Player In the Game: Recently Introduced Legislation

1. Horse Racing:
   • Pennsylvania: A new bill proposes integrating the “Right-to-Know” law into the PA Consolidated Statutes, increasing transparency and requiring public disclosure of expenses by the Pennsylvania State Racing Commission and Pennsylvania Horse Breeders Association (HB 1648, 8/29/2023).

This report covers a broad range of topics within the gambling industry, including proposed regulatory changes in New York, recently passed legislation in Illinois, New Jersey, and Delaware, and emerging bills in California and Pennsylvania.

Read the full report here.

1. Regology database statistics filtered by jurisdiction [US federal/50 states], status [applicable bills only], and time period [August 1 – 31, 2023].
2. Bills 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.