Economic Impact and Inflow/Outflow Reporting

Require 360° economic analyses, including inflow/outflow data showing how money leaves the state.

What it does: Requires annual and periodic independent economic-impact reporting for sports wagering, including inflow/outflow analyses showing where money goes (in-state vs. out-of-state) plus tracking help-seeking and financial distress indicators.

Sources

Notes to Drafters

Draft Bill Text

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

Download as Word .docx
A BILL FOR AN ACT

RELATING TO MOBILE SPORTS WAGERING; REQUIRING ANNUAL AND PERIODIC INDEPENDENT
ECONOMIC IMPACT ANALYSES OF SPORTS WAGERING, INCLUDING INFLOW/OUTFLOW MONEY
FLOWS; REQUIRING OPERATOR REPORTING; PROVIDING FOR PUBLIC REPORTING,
CONFIDENTIALITY, AND FUNDING; 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 Economic Transparency 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) "Economic impact report" means the report required under Section 3.
  (4) "Inflow/outflow" means the movement of money into and out of this State attributable to
      sports wagering operations, including:
        (A) patron deposits originating in this State;
        (B) taxes and fees paid to this State;
        (C) payments to vendors, affiliates, and service providers (with in-state vs out-of-state
            location of the payee);
        (D) net profits distributed to out-of-state parents or owners; and
        (E) other categories specified by Commission rule.

SECTION 3. REQUIRED REPORTS.
  (a) Annual economic impact report. Not later than [September 1] of each year, the Commission
      shall publish an Economic impact report covering the prior fiscal year.

  (b) Independent comprehensive study. Not less frequently than once every [2] years, the
      Commission shall contract with an independent research entity (public university or other
      qualified independent organization) to prepare a comprehensive analysis of sports wagering
      impacts in this State. The Commission shall select an entity that is independent of the
      sports wagering industry and that agrees not to accept industry funding for the study.

SECTION 4. MINIMUM CONTENT.
The Economic impact report and independent study shall include, at minimum, to the extent
practicable and using appropriate methods:
  (1) Sports wagering activity and fiscal data:
        (A) total handle, gross gaming revenue, and net revenue by Operator;
        (B) taxes, fees, and assessments paid to the State;
        (C) marketing and advertising spending by Operator in this State; and
        (D) counts of active accounts and aggregate wagering volume.
  (2) Inflow/outflow transparency:
        (A) aggregated, categorized out-of-state payments by Operators (vendors, affiliates,
            technology providers, payments to parent entities);
        (B) aggregated, categorized in-state payments by Operators; and
        (C) methodology describing how payee location is determined.
  (3) Social and economic indicators (aggregate, non-identifying):
        (A) gambling hotline call volumes and other help-seeking indicators;
        (B) bankruptcy filings and other financial distress indicators, using publicly available
            data and any lawful data-sharing agreements; and
        (C) other indicators the Commission determines are useful and feasible.
  (4) Limitations and methodology: a plain-language description of methods, limitations,
      and potential confounders.

SECTION 5. OPERATOR REPORTING.
  (a) Required submissions. Each Operator shall submit data necessary for the Commission to
      prepare the reports required by this Act, including:
        (1) aggregated financial reporting described in Section 4(1);
        (2) aggregated marketing and advertising spend in this State; and
        (3) aggregated payee location and category data sufficient to produce the Inflow/outflow
            reporting in Section 4(2), in the form prescribed by Commission rule.

  (b) Confidentiality. The Commission shall protect trade secrets and confidential commercial
      information consistent with [STATE PUBLIC RECORDS LAW], but shall publish aggregated
      results sufficient to enable public oversight.

  (c) No patron-level disclosure. Nothing in this Act authorizes collection or publication of
      patron-level personally identifiable information for reporting purposes.

SECTION 6. FUNDING.
  (a) Assessment. The Commission shall assess each Operator an annual fee sufficient to cover
      the reasonable costs of implementing this Act, including independent studies.

  (b) Dedicated account. Fees collected under this section shall be deposited into a dedicated
      account to be used only for purposes of this Act.

SECTION 7. ENFORCEMENT; PENALTIES; RULEMAKING.
  (a) An Operator's failure to submit required information constitutes grounds for license discipline.

  (b) The Commission may impose a civil penalty of up to [$25,000] per day for failure to submit
      required reports or for materially false reporting.

  (c) The Commission shall adopt rules to implement this Act.

SECTION 8. 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 9. EFFECTIVE DATE.
This Act takes effect on [DATE].