Signed by Governor Jack Markell

Vote Smart's Synopsis:

Vote to pass a bill that authorizes online gambling, effective July 1, 2012.

Highlights:

• Expands state gambling laws to include the use of the Internet for certain lottery and table games (Sec. 2 & 14).

• Requires “Internet lottery” games to be available on approved websites with technology to ensure that the players are eligible to engage in gaming (Sec. 4).

• Defines “Internet lottery” as lottery games in which the player's interaction with the game occurs over the Internet, including Internet video lottery games, Internet ticket games, and Internet table games (Sec. 3).

• Prohibits individuals under the age of 18 from purchasing a lottery ticket or taking part in an Internet ticket game (Sec. 6).

• Prohibits individuals under the age of 21 from wagering on video lottery, sports lottery, or table games in an Internet video lottery facility (Sec. 6).

• Classifies a violation of provisions of this bill on under-age wagering in an Internet video lottery facility as a misdemeanor (Sec. 6).

• Requires the gross revenue from Internet video lotteries and Internet table games to be distributed as follows once the operation and administration costs of Internet games have been paid (Sec. 9):
• $3.75 million must be transferred to the State Lottery Fund for state use every fiscal year; and
• The remaining proceeds must be returned to the players and to the vendor and his or her administrative costs.

• Establishes an adjustable license fee with a $10.24 million cap, for license fees paid by video lottery agents, based on whether certain qualified investments have been made by the video lottery agent within a 12 month period ending on June 30 of each year (Sec. 10).

• Requires Internet Lottery game software to verify that the player engaged in the game is physically present in the state at the time he or she engages in such games (Sec. 14).

• Requires the Office to confirm that players of Internet lottery games are physically located in the state at the time they place a wager on such games, unless the Office determines that a player is not located in the state but is still within the jurisdiction of federal law and is permitted to participate in such games due to an interstate compact (Sec. 14).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes online gambling, effective July 1, 2012.

Highlights:

• Expands state gambling laws to include the use of the Internet for certain lottery and table games (Sec. 2 & 14).

• Requires “Internet lottery” games to be available on approved websites with technology to ensure that the players are eligible to engage in gaming (Sec. 4).

• Defines “Internet lottery” as lottery games in which the player's interaction with the game occurs over the Internet, including Internet video lottery games, Internet ticket games, and Internet table games (Sec. 3).

• Prohibits individuals under the age of 18 from purchasing a lottery ticket or taking part in an Internet ticket game (Sec. 6).

• Prohibits individuals under the age of 21 from wagering on video lottery, sports lottery, or table games in an Internet video lottery facility (Sec. 6).

• Classifies a violation of provisions of this bill on under-age wagering in an Internet video lottery facility as a misdemeanor (Sec. 6).

• Requires the gross revenue from Internet video lotteries and Internet table games to be distributed as follows once the operation and administration costs of Internet games have been paid (Sec. 9):
• $3.75 million must be transferred to the State Lottery Fund for state use every fiscal year; and
• The remaining proceeds must be returned to the players and to the vendor and his or her administrative costs.

• Establishes an adjustable license fee with a $10.24 million cap, for license fees paid by video lottery agents, based on whether certain qualified investments have been made by the video lottery agent within a 12 month period ending on June 30 of each year (Sec. 10).

• Requires Internet Lottery game software to verify that the player engaged in the game is physically present in the state at the time he or she engages in such games (Sec. 14).

• Requires the Office to confirm that players of Internet lottery games are physically located in the state at the time they place a wager on such games, unless the Office determines that a player is not located in the state but is still within the jurisdiction of federal law and is permitted to participate in such games due to an interstate compact (Sec. 14).

Full Bill Text