Duty to Intervene for Problem Gambling

Define quantifiable “problem gambling behavior” and require apps to stop serving users who meet that definition.
Proposal: auditable “High-Risk Gambling Indicators” definition

What it does: Requires the regulator to define auditable “High-Risk Gambling Indicators” and requires operators to impose a mandatory hard stop (and marketing/bonus bans) when those indicators are met.

Sources

Notes to Drafters

Draft Bill Text

CASPR is available for legal and technical support adapting this bill to specific state contexts.

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A BILL FOR AN ACT

RELATING TO MOBILE SPORTS WAGERING; ESTABLISHING A DUTY TO INTERVENE WHEN
PATRONS EXHIBIT QUANTIFIABLE INDICATORS OF PROBLEM GAMBLING; REQUIRING
OPERATORS TO MONITOR FOR HIGH-RISK INDICATORS AND TO SUSPEND SERVICE;
PROHIBITING MARKETING TO HIGH-RISK PATRONS; PROVIDING FOR ENFORCEMENT,
PENALTIES, AND RULEMAKING; 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 Duty to Intervene Act".

SECTION 2. DEFINITIONS.
In this Act:
  (1) "Commission" means the [STATE GAMING COMMISSION] or successor agency.
  (2) "Operator" means a person licensed or otherwise authorized under [STATE LAW] to
      conduct mobile sports wagering in this State.
  (3) "Patron" means an individual who opens or maintains an account with an Operator
      for mobile sports wagering.
  (4) "High-Risk Gambling Indicators" means objective, quantifiable behavioral and
      financial indicators established by the Commission by rule that, when met, indicate
      a materially elevated risk of gambling-related harm, including financial distress.
  (5) "High-Risk Patron" means a Patron who meets one or more High-Risk Gambling Indicators.
  (6) "Hard Stop" means a mandatory suspension of a Patron's ability to place wagers and
      make deposits with an Operator for a specified period, while permitting withdrawals.

SECTION 3. COMMISSION RULES: HIGH-RISK GAMBLING INDICATORS.
  (a) Rulemaking required. The Commission shall, by rule, establish High-Risk Gambling
      Indicators applicable to mobile sports wagering.

  (b) Minimum content. High-Risk Gambling Indicators shall be:
        (1) objective and measurable from Operator data and, where appropriate, payment data;
        (2) designed to detect patterns such as rapid escalation in deposits or wager size,
            repeated deposits after losses ("chasing"), repeated failed deposit attempts, and
            other patterns the Commission determines are evidence-based predictors of harm; and
        (3) auditable, with clear thresholds and time windows.

  (c) Public transparency. The Commission shall publish the Indicators and update them
      periodically based on evidence, enforcement experience, and stakeholder input.

SECTION 4. OPERATOR DUTY TO MONITOR AND INTERVENE.
  (a) Monitoring program. Each Operator shall implement a monitoring program sufficient to
      identify High-Risk Patrons using the High-Risk Gambling Indicators.

  (b) Mandatory Hard Stop. When an Operator identifies a High-Risk Patron, the Operator shall:
        (1) promptly impose a Hard Stop for not less than [90] days;
        (2) block the Patron from placing wagers and making deposits during the Hard Stop;
        (3) permit withdrawals of remaining funds, subject to anti-fraud and anti-money-laundering
            controls; and
        (4) display and deliver a notice that includes:
              (A) that the Operator is required by law to pause wagering due to indicators of harm;
              (B) the Hard Stop end date and steps for reinstatement;
              (C) problem-gambling resources and the State problem-gambling helpline; and
              (D) information about the Patron's right to request review for error.

  (c) Prohibition on circumvention. An Operator shall not:
        (1) route a High-Risk Patron to another brand, skin, or platform under common control; or
        (2) recommend alternative wagering channels to avoid the Hard Stop.

SECTION 5. PROHIBITION ON MARKETING AND INDUCEMENTS TO HIGH-RISK PATRONS.
  (a) Marketing prohibition. An Operator shall not send a High-Risk Patron marketing
      communications that promote sports wagering during:
        (1) any Hard Stop period; and
        (2) the [90] days following the end of a Hard Stop (a "cool-down"), unless the Patron
            affirmatively opts in after receiving a standardized warning disclosure prescribed by
            the Commission by rule.

  (b) Inducements prohibited. An Operator shall not offer any bonus, "free bet", deposit match,
      enhanced odds, cashback, loyalty reward, referral reward, or similar inducement to a
      High-Risk Patron at any time.

SECTION 6. RECORDKEEPING; REPORTING; AUDITS.
  (a) Records. An Operator shall maintain records sufficient to demonstrate compliance with this
      Act, including:
        (1) the Indicators met;
        (2) the time of identification;
        (3) actions taken and their timing; and
        (4) notices provided to the Patron.

  (b) Reporting. The Commission shall require periodic reporting by Operators on:
        (1) counts of High-Risk Patrons identified;
        (2) hard stops imposed and durations; and
        (3) enforcement actions taken by Operators.

  (c) Audits. The Commission may audit Operators for compliance and may require independent
      audits of monitoring systems.

SECTION 7. PRIVACY AND FAIRNESS REQUIREMENTS.
  (a) Use limitation. Data used for High-Risk determination shall not be used for marketing,
      credit decisions, or sale to third parties.

  (b) Nondiscrimination. The Commission shall design and periodically review Indicators to
      reduce unjustified disparate impacts. This subsection does not limit the Commission's
      authority to focus protections on groups at higher statistical risk where supported by
      evidence and lawful.

SECTION 8. ENFORCEMENT; PENALTIES; RULEMAKING.
  (a) A violation of this Act or a rule adopted under this Act constitutes grounds for license
      discipline.

  (b) The Commission may impose a civil penalty of up to [$25,000] per violation. Each wager
      accepted from a High-Risk Patron after the Operator has identified the Patron as high-risk
      is a separate violation.

  (c) The Commission shall adopt rules to implement this Act, including rules governing:
        (1) standardized consumer notices and disclosures;
        (2) review/appeal procedures for error correction; and
        (3) minimum technical standards for monitoring systems.

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].