2012 Legislation Regarding Internet Gambling or Lotteries

Updated February 7, 2013

online gambling

Since the Department of Justice ruling authorizing some internet gaming and lotteries, at least seven states – California, Delaware, Hawaii, Iowa, Illinois, Mississippi, and New Jersey – have introduced legislation authorizing forms of internet gaming in their states.  Utah has passed legislation specifically prohibiting internet gaming, and Michigan and Colorado introduced legislation prohibiting online lottery sales.  Maine has altered their gaming statute in response to the Department of Justice ruling, and Pennsylvania has introduced legislation to increase awareness of the risks of internet gaming.  Vermont has authorized a study on the impact of allowing lottery ticket sales over the Internet. 
 
On June 28, Delaware became the second state, along with Nevada, to authorize some form of Internet gaming.  On December 20, New Jersey’s legislature approved a bill that would authorize internet wagering at Atlantic City casinos, but it awaits the Governor’s approval.

California
SB 1463
Status: 6/12/2012 – In Senate Committee on Governmental Organization: Not Heard
Establishes a framework to authorize intrastate Internet gambling.  Authorizes eligible entities to apply for a 10 year license to operate an intrastate Internet gambling Web site offering the play of authorized gambling games to registered players within the state.  Prohibits the offer or play of any gambling game provided over the Internet that is not authorized by the State.   Provides that any violation of its provisions is punishable as a misdemeanor.

Colorado
HB 1359
Status: 5/7/2012 – Failed to Pass.
Concerns the prohibition of internet lottery.

Delaware
HB 333
Status: 6/28/2012 - ENACTED.
The Delaware Gaming Competitiveness Act of 2012 improves the ability of the Delaware Lottery and Delaware's video lottery agents to offer services to lottery players in an increasingly competitive marketplace. The Act authorizes internet gaming under the control and operation of the Delaware Lottery. The Delaware Lottery Office is authorized to conduct traditional lottery games over the internet. Delaware's video lottery agents are authorized to offer through their websites internet versions of the table.

Hawaii
HB 2422
Status: Failed upon Adjournment.
Establishes the Hawaii Internet Lottery and Gaming Corporation for the purpose of conducting internet gambling in Hawaii; allocates proceeds to capital improvements at public schools and the University of Hawaii system, scholarships and educational loan repayments for medical students who practice in Hawaii for 10 years, support for the family practice rural residency program, watershed protection, and reduction and prevention of problem gambling.

SB 2893
Status: Failed upon Adjournment.
Establishes a gambling task force to perform a comprehensive social and financial analysis of the different types of gambling and their impact on the State in order for legislators to make informed policy decisions. 
The assessment applies to every form of gambling to the State, including but not limited to the lottery, casino, slots, table games, horse and dog racing, sports betting, bingo, and internet gaming.

SB 2980
Status: Failed upon Adjournment.
Establishes the Hawaii internet lottery and gaming corporation for the purpose of conducting internet gambling in Hawaii; allocates proceeds to capital improvements at public schools and the University of Hawaii system, scholarships and educational loan repayments for medical students who practice in Hawaii for 10 years, support for the family practice rural residency program, watershed protection, and reduction and prevention of problem gambling.

Illinois
HB 5018
Status: 2/7/2012 – To House Committee on Rules
Creates the Internet Gaming Act; contains only a short title provision.

HB 5676
Status: 2/16/2012 – To House Committee on Rules
Amends the Lottery Law; provides that, if the Internet pilot program becomes operational, the commissions paid to sales agents may not be reduced to a rate of less than 5%; requires that Lottery tickets under the Internet Lottery program be purchased through the use of stored value cards authorized by the Department; however, an individual may add his or her prize on a winning ticket to a stored value card; prohibits the purchase of Lottery tickets or the stored value cards under the Internet Lottery.

SB 3497
Status: 8/27/2012 - ENACTED.
Amends the Lottery Law and the State Finance Act; allows the Lottery to offer Powerball games through the Internet pilot program; provides for the net revenue from the sale of Powerball tickets on the Internet to be deposited into the State Financial Recovery Fund, a special fund created in the State treasury, by the Department and for the moneys in the Fund to be used by the Comptroller for the sole purpose of payment of proper Bills or invoices from a vendor for goods or services furnished to the state.

Iowa
HSB 626
Status: Failed upon Adjournment.
Permitting internet wagering by licensees authorized to conduct gambling games on an excursion boat, gambling structure, or racetrack enclosure, and making penalties applicable.

SF 2275
Status: Failed upon Adjournment.
Permits licensees authorized to conduct gambling games to apply for and receive a license to conduct internet wagering on poker; concerns definitions, is amended; defines internet wagering as a method of wagering by which a person may establish an account, deposit money into the account, and use the account balance for wagering by utilizing electronic communication; also defines internet wagering operator as a person who has entered into an agreement to conduct internet wagering for an internet wagering.

SSB 3164
Status: Failed upon Adjournment.
Permits licensees authorized to conduct gambling games to apply for and receive a license to conduct Internet wagering on poker; concerns definitions; defines Internet wagering as a method of wagering by which a person may establish an account, deposit money into the account, and use the account balance for wagering by utilizing electronic communication; provides that the definition of adjusted gross receipts is amended to mean, for Internet wagering, the gross receipts for Internet.

Maine
SP 657
Status: 4/12/2012 – ENACTED
Defines agent as it pertains to businesses licensed to sell lottery tickets on behalf of the State; provides that a gambling activity not expressly authorized by law does not cease to be unlawful solely because it is authorized under federal law or the laws of another state or jurisdiction.
Change in law is in reaction to the Department of Justice opinion regarding internet gaming.

Michigan
SB 1003
Status: 3/6/2012 – To Senate Committee on Regulatory Reform
Prohibits sales of lottery tickets over the Internet.

Mississippi
HB 1373
Status: 3/6/2012 – Failed. Died in Committee.
Creates the Mississippi lawful internet gaming act of 2012; makes findings regarding the authority of the state to regulate lawful internet gaming, in response to certain federal laws and recent action by the united states department of justice; sets forth definitions that apply to the provisions of the act; provides a process whereby the Mississippi gaming commission may issue internet wagering permits to gaming licensees.

New Jersey
AB 2578
Status: 2/7/2013 - Conditionally Vetoed by Governor; Received by Assembly
Authorizes Internet wagering at Atlantic City casinos under certain circumstances.

ACR 87
Status: 1/10/2012 – To Assembly Committee on Regulatory Oversight and Gaming
Proposes constitutional amendment to allow electronic wagering terminals at horse racetracks, off track wagering facilities, and casinos for wagering on historical races or races conducted in the past.

ACR 125
Status: 2/21/2012 – To Assembly Committee on Regulatory Oversight and Gaming
Proposes constitutional amendment to permit wagers to be placed at casinos on games and sports events using Internet or other electronic means.

SB 52
Status: 1/10/2012 – To Senate Committee on State Government, Wagering, Tourism and Historic Preservation.
Clarifies definition of illegal gambling to address Internet gambling; voids credit card debt incurred through illegal gambling; authorizes State to recover illegal gambling losses.

SB 56
Status: 1/10/2012 - To Senate Committee on State Government, Wagering, Tourism and Historic Preservation.
Permits conduct of lottery games on Internet.

SB 1565
Status: 12/20/2012 – Substituted by Senate for AB 2578
Authorizes Internet wagering at Atlantic City casinos under certain circumstances.

Pennsylvania
HB 65
Status: 5/2/2012 – Passed House.  To Senate.
Amends the Amusements Code; provides for an Internet gambling public awareness campaign and for revocation and auction of slot machine licenses; provides for a Category 2 slot machine license, for number of slot machine licenses and for table game taxes; provides for a prohibition on the use of state funds; includes public awareness of the risks of Internet gambling, of being defrauded of large amounts of money, risks of identity theft, risks to underage and problem gamblers and risks to personal safety.

Utah
HB 108; 2012 Utah Laws, Ch. 157
Status: 4/2/2012 – ENACTED
Modifies the Criminal Code regarding the definition of gambling; defines Internet gambling; clarifies that gambling, which is prohibited in Utah, includes any form of Internet gambling.

Vermont
HB 781; 2012 Vt. Acts, Act 162
Status: 5/17/2012 – ENACTED
Adjusts appropriations in support of government for fiscal year 2013; requires insurers to pay a fee into the Information Technology fund and the State Health Care Resources Fund; provides for co-payments for the VPharm Assistance program and third party liability liens against insurers; requires a pharmaceutical manufacturer to pay a rebate on all claims for which state-only funds are expended; increases the state's affordable housing tax credit.
Provides that the lottery commission shall study the option of allowing the sale of lottery tickets online and report its findings and any recommendations to the house committee on general, housing and military  affairs and the senate committee on economic development, housing and general affairs by January 15, 2013.

 

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