WEST virginia Legislature
2017 regular session
By
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to the Committee on the Judiciary then Finance.
A BILL to amend the Code
of West Virginia, 1931, as amended, by adding thereto a new article, designated
§29-25A-1, §29-25A-2 and §29-25A-3, all relating to legalizing
sport pool betting; authorizing the State Lottery Commission to promulgate
legislative rules establishing sports betting; finding that federal law
prohibiting sports betting in West Virginia is unconstitutional; authorizing
assessment of fees and other necessary requirements; authorizing a tax on bets;
establishing a special revenue account; and allowing incorporation of current
laws and the promulgation of further requirements for sports betting by
legislative rule.
Be it enacted by the
Legislature of West Virginia:
That the Code of West
Virginia, 1931, as amended, be amended by adding thereto a new article,
designated §29-25A-1, §29-25A-2 and §29-25A-3, all to read as
follows:
ARTICLE 25. sports
betting AUTHORIZED.
§29-25A-1. Sports
betting authorization; legislative findings.
The West Virginia
Legislature finds:
(1) That in 1992,
Congress unlawfully enacted the Federal Professional and Amateur Sports
Protection Act (28 U.S.C. Section 3701 et seq.), establishing a general
prohibition on sports betting in the United States and prohibiting state and
local governments from authorizing sports betting; and even amid strong federal
laws banning sports betting in the United States, reports highlight that
illegal sports betting is widespread and is considered the number one form of
gambling among American residents; and according to a report conducted for the
National Basketball Association's Board of Governors, some estimates have the
total volume of sports betting in the United States at $325 to $400 billion,
with less than one percent of betting taking place in legal form; and the
proliferation of fantasy sports betting, primarily daily fantasy sports
contests played through Internet websites, has become a household occurrence,
with the Fantasy Sports Trade Association estimating that fifty-six million,
eight hundred thousand people play fantasy sports and bet an average of $465 a
year on fantasy games in the United States; and in order to protect the public
and ensure the integrity of not only professional and amateur sports but West
Virginia’s current licensed gaming industry, the federal government act to
prohibit this state from allowing sports pool betting is in clear violation of
the 10th Amendment of the U.S. Constitution and the authority to regulate all
gambling lies with the states; and
(2) West Virginia would
benefit financially from sports betting, as increased state revenues would be
generated and numerous jobs would be preserved and created for state residents
as a result of sports betting activities at licensed casino gaming
facilities. Therefore, by enactment of
this law, the Legislature intends to create a mechanism to enable the West
Virginia Lottery Commission to authorize and regulate sports betting at our
state casino gaming facilities upon removal of federal restrictions prohibiting
sports betting in West Virginia.
(3) The Legislature
further finds and declares that sports pool betting permitted by this article
constitute the operation of lotteries within the purview of section thirty-six,
article VI of the Constitution of West Virginia, and that the right to lawfully
place sports pool bets in the state is owned by the state and therefore the
right to conduct sports pool betting may be licensed by the Lottery Commission
created pursuant to article twenty-two of this chapter.
§29-25A-2. Authorization of sports betting
notwithstanding federal prohibition.
Whereas our State
Attorney General is challenging the usurpation of the federal government of state
authority to regulate sports pool betting and has articulated in the briefs of the
State of West Virginia in Cristie v. NCAA,
16-476, U.S. Supreme Court, that the U.S. Congress has no power to
prevent state governments from authorizing sports betting as a form of gaming
and therefore, the Legislature finds that it is reasonable and appropriate, for
the State of West Virginia to proceed with legalizing sports pool betting
pursuant to this article.
§29-25A-3. Requirements for lawful sports pool betting;
commission guidelines; legislative declarations; exceptions for amateur events.
(a) Notwithstanding any
provision of law to the contrary, the operation of West Virginia Lottery sports
betting games permitted by this article and the related operation of a gaming
facility and ancillary activities are not unlawful when conducted under the
terms specified in this article, article twenty-five of this chapter, and
legislative rules promulgated by the Lottery Commission.
(b) For the purposes of this
article “sports pool betting” means the business of accepting wagers on
sporting events or other events by any system or method of wagering other than
horse or dog races. The term includes, but is not limited to, a licensee that
accepts bets for any sporting event, including betting on sports parlay card
wagers which combine multiple sports event outcomes combined into a single
wage, or other similar betting activities as defined by rules as provided
pursuant to this section.
(c) The commission shall
propose rules for legislative approval in accordance with article three,
chapter twenty-nine-a of this code in order to implement the purpose of this
article. The rules shall provide
regulatory guidelines, without limitation, that include at a minimum, financial
and betting reserve accounting practices and other necessary and appropriate
requirements to properly assure financial viability and proper operation The commission shall incorporate by reference
in these rules appropriate statutes and other rules contained in and relating
to article twenty-five of this chapter necessary to properly and effectively
regulate sport pool betting activities; and provide for reasonable annual
licensing fees, licensed gaming facilities sufficient for the commission to regulate
this activity.
(d) For each bet received, the gaming facility
shall pay two percent tax of the total wager into the special revenue account
known as the “Sports Betting Special Revenue Fund.” Expenditures for the fund are not authorized
from collections but are to be made only in accordance with the appropriation
by the Legislature in accordance with article three, chapter twelve of this
code and upon fulfillment of article two, chapter eleven-b of this code: Provided, That for the first fiscal year
ending June 30, following authorization of sports pool betting, expenditures
are authorized from collections rather than pursuant to appropriation by the
Legislature.
(e) No wagers may be
accepted or paid by any book on any amateur sport or athletic event other than
collegiate sporting or athletic events and Olympic sporting or athletic events
sanctioned by the International Olympic Committee, subject to limitations and
rules of the commission. No wagers may
be accepted or paid off premises of the licensed facility.
NOTE: The purpose of this bill is
to allow sports betting at West Virginia casinos; the state Lottery Commission
is authorized to promulgate legislatives rule establishing sports betting and
provides a legislative finding that federal government has no authority to
prohibit sports betting in West Virginia; providing for a tax on bets and a
special revenue account; and allowing incorporation of current laws and the
promulgation of further requirements and fees for sports betting by legislative
rule.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.