Cross-Operator Loss Limit + Mandatory Cool-Off

A BILL FOR AN ACT

RELATING TO MOBILE SPORTS WAGERING; ESTABLISHING A STATEWIDE CROSS-OPERATOR
LOSS LIMIT AND A MANDATORY COOLING-OFF PERIOD; REQUIRING OPERATOR REPORTING
AND REAL-TIME COMPLIANCE CHECKS; PROVIDING FOR ENFORCEMENT, CIVIL PENALTIES,
AND LICENSE SANCTIONS; AND PROVIDING AN EFFECTIVE DATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF [STATE]:

SECTION 1. SHORT TITLE.
This Act may be cited as the "Sports Wagering Loss Limit and Cooling-Off Act".

SECTION 2. PURPOSE.
The purpose of this Act is to reduce acute gambling-related financial harms by preventing
rapid, high-magnitude losses across mobile sports wagering operators and by creating a
mandatory cooling-off period after a patron exceeds a defined loss threshold.

SECTION 3. DEFINITIONS.
In this Act:
  (1) "Commission" means the [STATE GAMING COMMISSION] or successor agency that
      licenses and regulates sports wagering in this State.
  (2) "Mobile sports wagering" means accepting, facilitating, or enabling sports wagers
      via internet, mobile application, or similar digital platform by a person located
      in this State.
  (3) "Operator" means a person licensed or otherwise authorized under [STATE LAW]
      to conduct mobile sports wagering in this State, including any sports wagering
      operator, internet sports wagering operator, or similar licensee, and any
      platform provider acting on behalf of such licensee.
  (4) "Patron" means an individual who opens or maintains an account with an Operator
      for mobile sports wagering.
  (5) "Net loss" means, for a Patron and a specified period:
        (A) the total amount wagered by the Patron on sports wagers accepted by any Operator in
            this State during the period, excluding any amount wagered using promotional credits,
            bonuses, "free bets", or other non-cash inducements provided by an Operator; minus
        (B) the total amount paid out or returned to the Patron by Operators during the period as
            winnings or refunds of voided wagers related to those sports wagers.
  (6) "Loss accumulation period" means [a calendar month / a rolling 30-day period],
      as specified by the Commission by rule.
  (7) "Cooling-off period" means a mandatory period during which a Patron shall not
      place sports wagers with any Operator in this State and Operators shall not accept
      sports wagers or deposits from the Patron.

SECTION 4. RESPONSIBLE GAMBLING LIMIT SYSTEM.
  (a) Establishment. The Commission shall establish and administer (directly or through
      a contracted service provider) a statewide Responsible Gambling Limit System
      ("RGLS") to:
        (1) uniquely identify Patrons for purposes of cross-operator loss monitoring;
        (2) calculate each Patron's Net loss during each Loss accumulation period; and
        (3) determine and communicate whether a Patron is subject to a Cooling-off period.

  (b) Minimum capabilities. The RGLS shall, at minimum:
        (1) provide a secure, documented electronic interface for Operators to
            (A) register Patrons, and
            (B) query Patron status (not in cooling-off / in cooling-off, with end date);
        (2) receive, store, and process transaction reporting sufficient to calculate Net loss;
        (3) generate audit logs adequate for compliance review; and
        (4) implement information security controls appropriate for sensitive personal
            information, including access controls, encryption in transit and at rest, and
            incident response procedures.

SECTION 5. LOSS THRESHOLD; MANDATORY COOLING-OFF.
  (a) Trigger. If a Patron's Net loss during a Loss accumulation period equals or exceeds
      [$500] (the "loss threshold"), the RGLS shall place the Patron into a mandatory
      Cooling-off period.

  (b) Duration. The Cooling-off period shall be [90] days, beginning at the time the
      RGLS determines that the Patron has exceeded the loss threshold.

  (c) Effect. During a Cooling-off period:
        (1) An Operator shall not accept a sports wager from, or on behalf of, the Patron.
        (2) An Operator shall not accept a deposit or other funding transaction from the Patron.
        (3) An Operator shall permit the Patron to withdraw remaining funds, subject to
            anti-fraud and anti-money-laundering controls.
        (4) An Operator shall not send marketing communications to the Patron promoting
            sports wagering and shall, upon login attempt, display a notice that the Patron
            is in a mandatory Cooling-off period, including the date the Cooling-off period ends
            and problem-gambling resources, including the State problem-gambling helpline.

SECTION 6. OPERATOR DUTIES; REPORTING AND REAL-TIME CHECKS.
  (a) Patron registration. Each Operator shall register each Patron with the RGLS at the
      time the Patron account is opened, and shall ensure that the Patron is uniquely
      identified using data elements specified by the Commission by rule.

  (b) Transaction reporting. Each Operator shall report to the RGLS, in the form and
      frequency required by Commission rule:
        (1) sports wagers accepted, including amounts wagered and outcomes;
        (2) winnings paid;
        (3) voided wagers and refunds; and
        (4) deposits and withdrawals.

  (c) Real-time checks. Each Operator shall query the RGLS for Patron status:
        (1) before accepting a sports wager; and
        (2) before accepting a deposit;
      and shall block the wager or deposit if the RGLS indicates the Patron is in a
      Cooling-off period.

SECTION 7. PRIVACY, DATA LIMITATIONS, AND DUE PROCESS.
  (a) Use limitation. Data collected or maintained under this Act shall be used only for
      responsible-gambling and regulatory compliance purposes and shall not be used for
      marketing, credit decisions, or sale to third parties.

  (b) Data minimization. The Commission shall require the RGLS to collect only the minimum
      personal information necessary to uniquely identify Patrons and administer this Act.

  (c) Retention. The Commission shall set retention periods by rule. Retention shall be no
      longer than reasonably necessary for enforcement and auditing.

  (d) Review of errors. A Patron may request review if the Patron reasonably believes that
      the Patron has been placed into a Cooling-off period due to an identification or data
      error. The Commission shall establish by rule a prompt review process that protects
      public safety while correcting errors.

SECTION 8. ENFORCEMENT; PENALTIES.
  (a) Regulatory enforcement. A violation of this Act or a rule adopted under this Act
      constitutes grounds for disciplinary action against an Operator's license, including
      suspension, revocation, or the imposition of conditions.

  (b) Civil penalties. In addition to any other remedy, the Commission may impose a civil
      penalty of up to [$10,000] per violation. Each wager accepted in violation of a
      Cooling-off period constitutes a separate violation.

  (c) Rulemaking. The Commission shall adopt rules as necessary to implement this Act,
      including rules establishing (1) the Loss accumulation period, (2) technical reporting
      standards, and (3) audit and compliance procedures.

SECTION 9. SEVERABILITY.
If any provision of this Act or its application is held invalid, the invalidity does not affect
other provisions or applications of this Act that can be given effect without the invalid
provision or application.

SECTION 10. EFFECTIVE DATE.
This Act takes effect on [DATE], except that the Commission may take any action necessary to
implement this Act, including adopting rules and procuring an RGLS, before that date.