Florida Senate - 2011 COMMITTEE AMENDMENT Bill No. SB 812 Barcode 683530 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/16/2011 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Regulated Industries (Diaz de la Portilla) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. This act may be cited as the “Internet Poker 6 Consumer Protection and Revenue Generation Act.” 7 Section 2. Section 849.087, Florida Statutes, is created to 8 read: 9 849.087 Intrastate Internet poker authorized.— 10 (1) LEGISLATIVE INTENT.—It is the intent of the Legislature 11 to create a framework for the state to regulate intrastate 12 Internet poker which can ensure consumer protections and 13 additional revenue to the state by authorizing, implementing, 14 and creating a licensing and regulatory structure and system of 15 intrastate Internet poker to: 16 (a) Provide that intrastate Internet poker is offered for 17 play only in a manner that is lawful under the federal Unlawful 18 Internet Gambling Enforcement Act of 2006. 19 (b) Provide a new source of revenue that will generate 20 additional positive economic benefits to the state through the 21 authorization of lawful and regulated intrastate Internet poker 22 in Florida instead of flowing offshore to unregulated foreign 23 operators and markets. 24 (c) Create a contractual relationship with one or more 25 Internet poker hub operators having the technical expertise to 26 ensure that wagering authorized by this section is offered only 27 to registered players who are at least 18 years of age and 28 physically present within the borders of this state at the time 29 of play. 30 (d) Provide for a competitive procurement process to select 31 one or more Internet poker hub operators that are qualified to 32 be licensed by the state and meet all statutory, regulatory, and 33 contractual requirements of the state while protecting 34 registered poker players. 35 (e) Provide for a licensed cardroom operator to become a 36 licensed provider of intrastate Internet poker through Internet 37 poker hub operators. 38 (f) Ensure that the state is able to collect all taxes and 39 fees from the play of intrastate Internet poker. 40 (g) Create a system to protect each registered poker 41 player’s private information and prevent fraud and identity 42 theft and ensure that the player’s financial transactions are 43 processed in a secure and transparent fashion. 44 (h) Ensure that the regulatory agency has unlimited access 45 to the premises and records of the Internet poker hub operators 46 and cardroom affiliates to ensure strict compliance with its 47 regulations concerning credit authorization, account access, and 48 other security provisions. 49 (i) Require the Internet poker hub operators to provide 50 accessible customer service to registered poker players. 51 (j) Require the Internet poker hub operator’s Internet site 52 to contain information relating to problem gambling, including a 53 telephone number that an individual may call to seek information 54 and assistance for a potential gambling addiction. 55 (2) DEFINITIONS.—Unless otherwise clearly required by the 56 context, as used in this section: 57 (a) “Authorized game” means a game or series of games of 58 poker, which may include tournaments, which are played in a 59 nonbanking manner on a state Internet poker network. 60 (b) “Cardroom affiliate” means a licensed cardroom operator 61 as defined in s. 849.086 who maintains an Internet site as a 62 portal into a state Internet poker network. 63 (c) “Convicted” means having been found guilty, regardless 64 of adjudication, as a result of a jury verdict, nonjury trial, 65 or entry of a plea of guilty or nolo contendere. 66 (d) “Department” means the Department of Business and 67 Professional Regulation. 68 (e) “Division” means the Division of Pari-mutuel Wagering 69 of the department. 70 (f) “Gross receipts” means the total amount of money 71 received by an Internet poker hub operator from registered 72 players for participation in authorized games. 73 (g) “Internet poker hub operator” or “poker hub operator” 74 means a computer system operator that is licensed by the state 75 and contracts with the state to operate a state Internet poker 76 network. 77 (h) “Intrastate Internet poker” means authorized games of 78 poker played over the Internet by registered players who are 79 physically present within the borders of this state at the time 80 of play. 81 (i) “Liquidity” means the total number of registered 82 players available in a state Internet poker network. 83 (j) “Nonbanking game” means an authorized game in which an 84 Internet poker hub operator or cardroom affiliate is not a 85 participant and has no financial stake in the outcome of the 86 authorized game. 87 (k) “Player incentives” means any bonuses, rewards, prizes, 88 or other types of promotional items provided to a registered 89 player by an Internet poker hub operator or cardroom affiliate 90 as an incentive to begin or continue playing on a state Internet 91 poker network. 92 (l) “Rake” means a set fee or percentage of the pot 93 assessed by an Internet poker hub operator for providing the 94 Internet poker services to registered players for the right to 95 participate in an authorized game conducted by the poker hub 96 operator. 97 (m) “Registered player” means a person who is registered 98 with a poker hub operator under this section to participate in 99 an authorized game conducted on a state Internet poker network. 100 (n) “State Internet poker network” means a computer system 101 operated by one or more Internet poker hub operators which 102 authorizes the playing of and wagering on intrastate Internet 103 poker by registered players through the website portals of 104 cardroom affiliates. 105 (o) “Tournament fee” means a set fee assessed to registered 106 players by an Internet poker hub operator for providing the 107 Internet poker tournament services. 108 (3) INTRASTATE INTERNET POKER AUTHORIZED.— 109 (a) Under the Unlawful Internet Gambling Enforcement Act of 110 2006, a state is not precluded from regulating and conducting 111 intrastate Internet poker as long as all players and the online 112 wagering activities are located within the state. 113 (b) Notwithstanding any other provision of law, a person in 114 Florida may participate as a registered player in an authorized 115 game or tournament provided on a state Internet poker network by 116 a licensed cardroom affiliate or may operate a state Internet 117 poker network as a licensed Internet poker hub operator if such 118 game and poker operations are conducted strictly in accordance 119 with the provisions of this section and federal law. 120 (4) AUTHORITY OF DIVISION.—The division shall administer 121 this section and regulate the operation of a state Internet 122 poker network, the Internet poker hub operators, the cardroom 123 affiliates, and the play of intrastate Internet poker under this 124 section and the rules adopted pursuant to this section, and is 125 authorized to: 126 (a) Adopt rules related to Internet poker, including, but 127 not limited to, rules governing the issuance of operator and 128 individual occupational licenses to Internet poker hub 129 operators, cardroom affiliates, and their employees; operation 130 of a state Internet poker network and technical system 131 requirements; security of the financial information of 132 registered players and registered player accounts; bonuses, 133 awards, promotions, and other incentives to registered players; 134 recordkeeping and reporting requirements; the distribution of 135 Internet poker income; and the imposition and collection of all 136 fees and taxes imposed by this section. 137 (b) Conduct investigations and monitor operation of a state 138 Internet poker network and the playing of authorized games on a 139 network. 140 (c) Review the books, accounts, and records of any current 141 or former Internet poker hub operator or cardroom affiliate. 142 (d) Suspend or revoke any license, after a hearing, for any 143 violation of this section or the rules adopted pursuant to this 144 section. 145 (e) Take testimony, issue summons and subpoenas for any 146 witness, and issue subpoenas duces tecum in connection with any 147 matter within its jurisdiction. 148 (f) Monitor and ensure proper collection of taxes and fees 149 imposed by this section. The division shall monitor, audit, and 150 verify the cash flow and accounting of a state Internet poker 151 network revenue for any given operating day. 152 (g) Monitor and ensure that the playing of Internet poker 153 is conducted fairly and that all personal and financial 154 information provided by registered players is protected by the 155 Internet poker hub operators. 156 (5) INTERNET POKER HUB OPERATOR LICENSE REQUIRED; 157 APPLICATION.—A person may not operate as an Internet poker hub 158 operator in this state unless the person holds a valid Internet 159 poker hub operator license issued under this section. 160 (a) Only a person holding a valid Internet poker hub 161 operator license issued by the division may provide intrastate 162 Internet poker for play to registered players. 163 (b) An Internet poker hub operator must be an entity 164 authorized to conduct business in this state. 165 (c) A person seeking a license or renewal of a license to 166 operate as an Internet poker hub operator shall make application 167 on forms prescribed by the division. Applications for Internet 168 poker hub operator licenses shall contain all of the information 169 the division, by rule, determines is required to ensure 170 eligibility under this section. 171 (d) As a condition of licensure and to maintain continued 172 authority to conduct intrastate Internet poker, an Internet 173 poker hub operator licensee must provide the documentation 174 required under this section on a timely basis to the division 175 and the documentation must be appropriate, current, and 176 accurate. A change in ownership or interest of an Internet poker 177 hub operator licensee of 5 percent or more of the stock or other 178 evidence of ownership or equity in an Internet poker hub 179 operator licensee or any parent corporation or other business 180 entity that in any way owns or controls an Internet poker hub 181 operator licensee must be approved by the division before the 182 change, unless the owner is an existing holder of the license 183 who was previously approved by the division. A change in 184 ownership or interest of less than 5 percent which results in a 185 cumulative ownership or interest of 5 percent or more must be 186 approved by the division before the change, unless the owner is 187 an existing holder of the license who was previously approved by 188 the division. The division may then conduct an investigation to 189 ensure that the license is properly updated to show the change 190 in ownership or interest. Reporting is not required under this 191 paragraph if the person is holding 5 percent or less of the 192 equity or securities of a corporate owner of an Internet poker 193 hub operator licensee that has its securities registered 194 pursuant to s. 12 of the Securities Exchange Act of 1934, 15 195 U.S.C. ss. 78a-78kk, and if the corporation or entity files with 196 the United States Securities and Exchange Commission the reports 197 required by s. 13 of that act or if the securities of the 198 corporation or entity are regularly traded on an established 199 securities market in the United States. 200 (e) Any applicant and each licensee shall pay all fees as 201 required in subsections (24) and (25). 202 (6) SELECTION OF AN INTERNET POKER HUB OPERATOR BY 203 COMPETITIVE PROCUREMENT PROCESS; EVALUATION.— 204 (a) The division shall, subject to a competitive 205 procurement process, select no more than three Internet poker 206 hub operator applicants that meet the licensure and technical 207 requirements and expertise to provide services for lawful 208 intrastate Internet poker games in Florida. The applicants must 209 demonstrate the ability to ensure that intrastate Internet poker 210 is offered only to registered players who are at least 18 years 211 of age and who are physically present within the borders of this 212 state at the time of play. 213 (b) After each year of operation of intrastate Internet 214 poker, the division shall review and evaluate the current level 215 of liquidity in the state Internet poker network to determine if 216 there is a need to license additional Internet poker hub 217 operators, if the maximum number of Internet poker hub operators 218 has not already been authorized. If the division finds there is 219 sufficient evidence to support licensing additional Internet 220 poker hub operators, then the division may select additional 221 Internet poker hub operators pursuant to this subsection and the 222 qualifications specified in subsection (7). Notwithstanding the 223 power to license additional Internet poker hub operators under 224 this paragraph, only three Internet poker hub operators may be 225 licensed at any one time in the state. 226 (7) QUALIFICATIONS FOR AN INTERNET POKER HUB OPERATOR.—For 227 the purposes of this section, the division shall consider all of 228 the following as minimum qualifications to determine whether an 229 Internet poker hub operator applicant or any subcontractor 230 included in the hub operator applicant’s state application is 231 legally, technically, and financially qualified to become the 232 state’s Internet poker hub operator: 233 (a) The applicant is an entity authorized to conduct 234 business in this state. 235 (b) The applicant has not accepted any wager of money or 236 other consideration on any online gambling activity, including 237 poker, from any Florida resident since October 13, 2006. 238 However, this paragraph does not disqualify an applicant or 239 subcontractor who accepts online pari-mutuel wagers from any 240 Florida resident through a legal online pari-mutuel wagering 241 entity authorized in another state. 242 (c) The applicant’s executives and key employees meet the 243 requirements to obtain intrastate Internet poker occupational 244 licenses from the division, as set forth in subsection (12). 245 (d) The applicant has existing and established experience 246 with Internet gaming, or is licensed to conduct Internet gaming 247 activities, in one or more jurisdictions anywhere in the world 248 where Internet gaming is legal and regulated. 249 (e) The applicant and all entities with an ownership 250 interest in the applicant have demonstrated compliance with all 251 federal and state laws in the jurisdictions in which they 252 provide services. 253 (f) The applicant has provided all necessary documentation 254 and information relating to all proposed subcontractors of the 255 applicant. 256 (g) The applicant has provided a description of how it will 257 facilitate compliance with all of the standards set forth in 258 this section, including, but not limited to, those for: 259 1. Registered player processes and requirements relating to 260 intrastate play, age verification, and exclusion of problem 261 gamblers. 262 2. Network system requirements, including, but not limited 263 to, connectivity, hardware, software, anti-fraud systems, virus 264 prevention, data protection, access controls, firewalls, 265 disaster recovery, and redundancy. 266 3. Gaming systems, including, but not limited to, hardware 267 and software that ensures that: games are legal, games are 268 independent and fair, game and betting rules are available to 269 all registered players, and all data used for the conduct of 270 each game are randomly generated and unpredictable. 271 4. Ongoing auditing by the division and accounting systems, 272 including, but not limited to, those for registered player 273 accounts, participation fees, distribution of funds to 274 registered players, and distribution of revenue to the state. 275 (h) The applicant has provided all other documentation or 276 information that the division, by rule, has determined is 277 required to ensure that the applicant is legally, technically, 278 and financially qualified to enter into a contract to become the 279 state’s Internet poker hub operator. 280 (8) SUBMISSION OF THE APPLICATION FOR AN INTERNET POKER HUB 281 OPERATOR.—In addition to demonstrating that the applicant is 282 legally, technically, and financially qualified to become an 283 Internet poker hub operator in the state, the applicant must 284 describe how it will fulfill the contractual role envisaged by 285 this section. The applicant shall provide all of the following: 286 (a) All necessary documentation and information relating to 287 the applicant and its direct and indirect owners, including, but 288 not limited to: 289 1. Documentation that the entity is authorized to conduct 290 business in this state and other founding documents. 291 2. Current and historical audited financial and accounting 292 records. 293 3. Any and all documents relating to legal and regulatory 294 proceedings in this state and other jurisdictions involving the 295 applicant. 296 4. Any and all documents relating to the applicant’s 297 business history, including all state and federal tax filings. 298 5. Any and all documents relating to the nature and sources 299 of the applicant’s financing. 300 6. Any and all documentation that demonstrates that the 301 applicant is financially qualified to perform the obligations of 302 an Internet poker hub operator as described in this section. 303 7. Any other documentation or information that the 304 division, by rule, determines is required to ensure eligibility. 305 (b) All necessary documentation and information relating to 306 any of the subcontractors of the Internet poker hub operator 307 applicant, including, but not limited to: 308 1. A description of the services to be provided by each 309 subcontractor. 310 2. Information for each subcontractor as set forth in this 311 section. 312 3. Any other documentation or information that the 313 division, by rule, determines is required to ensure eligibility. 314 (c) A description as to how the applicant will facilitate 315 compliance with all of the standards set forth in this section, 316 including, but not limited to, those for: 317 1. Registered player requirements relating to: 318 a. Intrastate play. 319 b. Age verification. 320 c. Exclusion of problem gamblers. 321 2. Network system requirements, including, but not limited 322 to: 323 a. Connectivity. 324 b. Hardware. 325 c. Software. 326 d. Anti-fraud systems. 327 e. Virus prevention. 328 f. Data protection. 329 g. Access controls. 330 h. Firewalls. 331 i. Disaster recovery. 332 j. Redundancy. 333 3. Gaming systems, including, but not limited to, hardware 334 and software that ensures that: 335 a. Games are legal. 336 b. Games are independent and fair. 337 c. Game and betting rules are available to all registered 338 players. 339 d. All data used for the conduct of each game are randomly 340 generated and unpredictable. 341 4. Accounting systems, including, but not limited to, those 342 for: 343 a. Registered player accounts. 344 b. Participation fees. 345 c. Transparency and reporting to the division. 346 d. Distribution of revenue to the state, funds pursuant to 347 contract, and funds to registered players. 348 e. Ongoing auditing. 349 (d) A description of the games and services the applicant 350 proposes to offer to registered players. 351 (e) A description by the applicant of how it will ensure 352 that registered players are at least 18 years of age or older 353 and facilitate registered player protections and resolution of 354 player disputes. 355 (f) Upon submission of the initial application and 356 proposal, the applicant shall pay all fees required in 357 subsections (23) and (24). 358 (9) ANNUAL BOND REQUIRED.—The holder of a license to be an 359 Internet poker hub operator in the state shall be financially 360 and otherwise responsible for the operation of a state Internet 361 poker network and for the conduct of any employee involved in 362 the operation of the online poker network. Before the issuance 363 of an Internet poker hub operator license, each qualified 364 applicant for such a license must provide evidence of a surety 365 bond in the amount of $1 million, payable to the state, for each 366 year that the licensee is licensed to be an Internet poker hub 367 operator in the state. The bond shall be issued by a surety or 368 sureties authorized to do business in the state and approved by 369 the division and the Chief Financial Officer in his or her 370 capacity as treasurer of the division. The bond shall guarantee 371 that an Internet poker hub operator fulfills all financial 372 requirements of the contract. Such bond shall be kept in full 373 force and effect by an Internet poker hub operator during the 374 term of the license. 375 (10) CONTRACTUAL RELATIONSHIP; RIGHT TO TERMINATE 376 CONTRACT.—An Internet poker hub operator shall comply with the 377 terms of its contract with the state and this section. 378 (a) The accepted proposal agreed to by the division and an 379 Internet poker hub operator shall constitute the contract 380 between the state and the Internet poker hub operator. 381 (b) The contract between the state and an Internet poker 382 hub operator is for a 5-year period and may be renewed for a 383 period equal to the original contract, if agreed to by both 384 parties. 385 (c) The contract between the state and an Internet poker 386 hub operator may be amended by mutual written agreement of the 387 division and the Internet poker hub operator. 388 (d) If this section is amended in such a way that affects 389 the play of intrastate Internet poker or affects the operation 390 of intrasate Internet poker by the licensed Internet poker hub 391 operators contrary to the existing contract with the state, an 392 Internet poker hub operator may declare the contract null and 393 void within 90 days after the effective date of the amendment 394 and must provide at least 60 days prior written notice to the 395 division of such intent. Failure to provide notice of such 396 intent to declare the contract null and void within 60 days of 397 the effective date of any amendment to this section constitutes 398 an agreement to be bound by the amendments adopted after the 399 terms of the contract are established. 400 (e) In the event of commercial infeasibility due to a 401 change in federal law rendering the provision of intrastate 402 poker services illegal, an Internet poker hub operator or the 403 division may abandon the contract after providing the other 404 party with at least 90 days’ written notice of its intent to end 405 the contract and a statement explaining its interpretation that 406 continuing to provide services under the contract is 407 commercially infeasible. 408 (f) If a dispute arises between the parties to the 409 contract, either the division or the Internet poker hub operator 410 may go through an administrative law or circuit court for an 411 initial interpretation of the contract and the rights and 412 responsibilities in the contract. 413 (11) CARDROOM AFFILIATE LICENSE REQUIRED; APPLICATION; 414 FEES.—A cardroom affiliate license may only be issued or renewed 415 to a cardroom operator who is licensed under s. 849.086, 416 actively operates a cardroom with a minimum of 10 licensed 417 tables, and complies with all the requirements of s. 849.086 and 418 the rules adopted pursuant to that section. 419 (a) Only those persons holding a valid cardroom affiliate 420 license issued by the division may provide intrastate Internet 421 poker for play to registered players through its website. 422 (b) Prior to providing intrastate Internet poker for play 423 to registered players, a cardroom affiliate licensee must have 424 entered into a contractual relationship with a licensed Internet 425 poker hub operator to offer the play of Internet poker. A copy 426 of the contract must be on file with the division. 427 (c) After the initial cardroom affiliate license is 428 granted, the annual application for the renewal of that license 429 shall be made in conjunction with the applicant’s annual 430 application for its cardroom and pari-mutuel licenses under s. 431 849.086 and chapter 550, respectively. 432 (d) A person seeking a license or renewal of a license to 433 operate as a cardroom affiliate shall make the application on 434 forms prescribed by the division. An application for a cardroom 435 affiliate license shall contain all of the information the 436 division, by rule, determines is required to ensure eligibility. 437 (e) As a condition of licensure and to maintain continued 438 authority for the conduct of intrastate Internet poker, the 439 cardroom affiliate licensee must provide the documentation 440 required under this section on a timely basis to the division 441 and the documentation must be appropriate, current, and 442 accurate. 443 (f) As a condition of eligibility for license renewal, a 444 cardroom affiliate must have, as either an individual or as part 445 of a coalition as allowed in subsection (26)(d), an active and 446 operating portal, must have a current contract on file with the 447 division, and must have contributed at least 1 percent of the 448 total revenue generated from the play of intrastate Internet 449 poker through the Internet poker hub the cardroom affiliate has 450 contracted with from the previous state fiscal year, as 451 determined by the division. 452 (g) The annual cardroom affiliate license fee shall be 453 $1,000 as referenced in subsection (23)(c). 454 (h) The division shall adopt rules regarding cardroom 455 affiliate licenses and renewals. 456 (12) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE REQUIRED; 457 APPLICATION; FEES.— 458 (a) A person employed by or otherwise working for an 459 Internet poker hub operator or a cardroom affiliate in any 460 capacity related to and while conducting intrastate Internet 461 poker operations must hold a valid occupational license issued 462 by the division. 463 (b) An Internet poker hub operator or a cardroom affiliate 464 may not employ or allow to be employed any person in any 465 capacity related to the operation of intrastate Internet poker 466 unless the person holds a valid occupational license. 467 (c) An Internet poker hub operator or cardroom affiliate 468 may not contract with, or otherwise do business with, a business 469 required to hold a valid intrastate Internet poker business 470 occupational license, unless the business holds such a valid 471 license. 472 (d) A proprietorship, partnership, corporation, 473 subcontractor, or other entity must obtain a valid intrastate 474 Internet poker business occupational license issued by the 475 division to partner with, contract with, be associated with, or 476 participate in the conduct of intrastate Internet poker 477 operations with an Internet poker hub operator or a cardroom 478 affiliate. 479 (e) The division shall establish, by rule, a schedule for 480 the annual renewal of Internet poker hub operator and cardroom 481 affiliate occupational licenses. Intrastate Internet poker 482 occupational licenses are not transferable. 483 (f) A person seeking an intrastate Internet poker 484 occupational license, or renewal of such a license, shall make 485 the application on forms prescribed by the division and include 486 payment of the appropriate application fee. An application for 487 an intrastate Internet poker occupational license shall contain 488 all of the information the division, by rule, determines is 489 required to ensure eligibility under this section. 490 (g) The division shall adopt rules regarding intrastate 491 Internet poker occupational licenses and renewals. 492 (h) An intrastate Internet poker occupational license is 493 valid for the same term as a pari-mutuel occupational license 494 issued under s. 550.105(1). 495 (i) Pursuant to rules adopted by the division, any person 496 may apply for and, if qualified, be issued an intrastate 497 Internet poker occupational license valid for a period of 3 498 years upon payment of the full occupational license fee for each 499 of the 3 years for which the license is issued. The intrastate 500 Internet poker occupational license is valid during its 501 specified term at any Internet poker hub operator or a cardroom 502 affiliate where intrastate Internet poker is authorized to be 503 conducted. 504 (j) The intrastate Internet poker occupational license fee 505 for initial application and annual renewal shall be determined 506 by rule of the division but may not exceed $50 for an 507 occupational license for an employee of an Internet poker hub 508 operator or a cardroom affiliate licensee or $1,000 for a 509 business occupational license for nonemployees of the licensee 510 providing goods or services to an Internet poker hub operator or 511 a cardroom affiliate occupational licensee. Failure to pay the 512 required fee constitutes grounds for disciplinary action by the 513 division against an Internet poker hub operator or a cardroom 514 affiliate occupational licensee. 515 (k) A person holding a valid individual cardroom 516 occupational license issued by the division under s. 849.086(6) 517 is not required to obtain an individual employee occupational 518 license under this subsection. 519 (13) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE DENIAL, 520 REVOCATION, SUSPENSION, LIMITATION, OR NONRENEWAL.—The division 521 may: 522 (a) Deny an application for, or revoke, suspend, or place 523 conditions or restrictions on, a license of a person or entity 524 that has been refused a license by any other state gaming 525 commission, governmental department, agency, or other authority 526 exercising regulatory jurisdiction over the gaming of another 527 state or jurisdiction. 528 (b) Deny an application for, or suspend or place conditions 529 or restrictions on, a license of any person or entity that is 530 under suspension or has unpaid fines in another state or 531 jurisdiction. 532 (c) Deny, suspend, revoke, or refuse to renew any Internet 533 poker hub operator or cardroom affiliate occupational license if 534 the applicant for the license or the licensee has violated this 535 section or the rules of the division governing the conduct of 536 persons connected with the play of intrastate Internet poker. 537 (d) Deny, suspend, revoke, or refuse to renew any Internet 538 poker hub operator or cardroom affiliate occupational license if 539 the applicant for the license or the licensee has been convicted 540 in this state, in any other state, or under the laws of the 541 United States of a capital felony, a felony, or an offense in 542 any other state that would be a felony under the laws of this 543 state involving arson; trafficking in, conspiracy to traffic in, 544 smuggling, importing, conspiracy to smuggle or import, or 545 delivery, sale, or distribution of a controlled substance; 546 racketeering; or a crime involving a lack of good moral 547 character, or has had a gaming license revoked by this state or 548 any other jurisdiction for any gaming-related offense. 549 (e) Deny, revoke, or refuse to renew any Internet poker hub 550 operator or cardroom affiliate occupational license if the 551 applicant for the license or the licensee has been convicted of 552 a felony or misdemeanor in this state, in any other state, or 553 under the laws of the United States if such felony or 554 misdemeanor is related to gambling or bookmaking as described in 555 s. 849.25. 556 (14) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE; 557 FINGERPRINTS; FEES; CITATIONS.— 558 (a) A person employed by or working with an Internet poker 559 hub operator or a cardroom affiliate must submit fingerprints 560 for a criminal history record check and may not have been 561 convicted of any disqualifying criminal offense specified in 562 subsection (7). Division employees and law enforcement officers 563 assigned by their employing agencies to work within the premises 564 as part of their official duties are excluded from the criminal 565 history record check requirements under this subsection. 566 (b) Fingerprints for all intrastate Internet poker 567 occupational license applications shall be taken in a manner 568 approved by the division upon initial application, or as 569 required thereafter by rule of the division, and shall be 570 submitted electronically to the Department of Law Enforcement 571 for state processing. The Department of Law Enforcement shall 572 forward the fingerprints to the Federal Bureau of Investigation 573 for national processing. The results of the criminal history 574 record check shall be returned to the division for purposes of 575 screening. The division requirements under this subsection shall 576 be instituted in consultation with the Department of Law 577 Enforcement. 578 (c) The cost of processing fingerprints and conducting a 579 criminal history record check for an intrastate Internet poker 580 occupational license shall be borne by the person being checked. 581 The Department of Law Enforcement may invoice the division for 582 the fingerprints submitted each month. 583 (d) All fingerprints submitted to the Department of Law 584 Enforcement and required by this section shall be retained by 585 the Department of Law Enforcement and entered into the statewide 586 automated fingerprint identification system as authorized by s. 587 943.05(2)(b) and shall be available for all purposes and uses 588 authorized for arrest fingerprint cards entered into the 589 statewide automated fingerprint identification system under s. 590 943.051. 591 (e) The Department of Law Enforcement shall search all 592 arrest fingerprints received under s. 943.051 against the 593 fingerprints retained in the statewide automated fingerprint 594 identification system. Any arrest record that is identified with 595 the retained fingerprints of a person subject to the criminal 596 history screening requirements of this section shall be reported 597 to the division. Each licensed facility shall pay a fee to the 598 division for the cost of retention of the fingerprints and the 599 ongoing searches under this paragraph. The division shall 600 forward the payment to the Department of Law Enforcement. The 601 amount of the fee to be imposed for performing these searches 602 and the procedures for the retention of licensee fingerprints 603 shall be as established by rule of the Department of Law 604 Enforcement. The division shall inform the Department of Law 605 Enforcement of any change in the license status of licensees 606 whose fingerprints are retained under paragraph (d). 607 (f) The division shall request the Department of Law 608 Enforcement to forward the fingerprints to the Federal Bureau of 609 Investigation for a national criminal history records check 610 every 3 years following issuance of a license. If the 611 fingerprints of a person who is licensed have not been retained 612 by the Department of Law Enforcement, the person must file a 613 complete set of fingerprints as provided for in paragraph (a). 614 The division shall collect the fees for the cost of the national 615 criminal history record check under this paragraph and shall 616 forward the payment to the Department of Law Enforcement. The 617 cost of processing fingerprints and conducting a criminal 618 history record check under this paragraph for an intrastate 619 Internet poker occupational license shall be borne by the person 620 being checked. The Department of Law Enforcement may invoice the 621 division for the fingerprints submitted each month. Under 622 penalty of perjury, each person who is licensed or who is 623 fingerprinted as required by this subsection must agree to 624 inform the division within 48 hours if he or she is convicted of 625 or has entered a plea of guilty or nolo contendere to any 626 disqualifying offense, regardless of adjudication. 627 (g) All moneys collected under this subsection shall be 628 deposited into the Pari-mutuel Wagering Trust Fund. 629 (h) The division may deny, revoke, or suspend any 630 occupational license if the applicant or holder of the license 631 accumulates unpaid obligations, defaults in obligations, or 632 issues drafts or checks that are dishonored or for which payment 633 is refused without reasonable cause. 634 (i) The division may fine or suspend, revoke, or place 635 conditions upon the license of any licensee who provides false 636 information under oath regarding an application for a license or 637 an investigation by the division. 638 (j) The division may impose a civil fine of up to $10,000 639 for each violation of this section or the rules of the division 640 in addition to or in lieu of any other penalty provided for in 641 this subsection. The division may adopt a penalty schedule for 642 violations of this section or any rule adopted pursuant to this 643 section for which it would impose a fine in lieu of a suspension 644 and adopt rules allowing for the issuance of citations, 645 including procedures to address such citations, to persons who 646 violate such rules. In addition to any other penalty provided by 647 law, the division may exclude from all licensed pari-mutuel, 648 cardroom, and slot machine facilities in this state, for a 649 period not to exceed the period of suspension, revocation, or 650 ineligibility, any person whose occupational license application 651 has been declared ineligible to hold an occupational license or 652 whose occupational license has been suspended or revoked by the 653 division. 654 (15) INTRASTATE INTERNET POKER; AUTHORIZED GAMES.— 655 (a) In order to offer a specific game of poker for play, an 656 Internet poker hub operator shall provide the division with: 657 1. A description of any game of poker and the betting rules 658 it proposes to offer to registered players; and 659 2. Documentation relating to development and testing of the 660 game’s software. 661 (b) Upon submission of the information required in 662 paragraph (a), an Internet poker hub operator may begin offering 663 the game. If the division does not object to the proposed game 664 of poker within 30 days after receipt of the submission, the 665 game will be considered authorized and the Internet poker hub 666 operator submitting the proposal may continue to offer the game 667 to registered players. 668 (c) Games and betting events shall be operated strictly in 669 accordance with the specified game and betting rules. 670 (d) An Internet poker hub operator shall ensure that the 671 authorized games of poker are fair. For each proposed or 672 authorized game offered for play, the gaming system shall 673 display the following information: 674 1. The name of the game. 675 2. Any restrictions on play. 676 3. The rules of the game. 677 4. All instructions on how to play. 678 5. The unit and total bets permitted. 679 6. The registered player’s current account balance, which 680 shall be updated in real time. 681 7. Any other information that an Internet poker hub 682 operator determines is necessary for the registered player to 683 have in real time to compete fairly in the proposed or 684 authorized game. 685 (e) All proposed and authorized game results shall be 686 conducted in such a fashion that: 687 1. Data used to create results shall be unpredictable such 688 that it is infeasible to predict the next occurrence in a game, 689 given complete knowledge of the algorithm or hardware generating 690 the sequence, and all previously generated numbers. 691 2. The game or any game event outcome shall not be affected 692 by the effective bandwidth, link utilization, bit error rate, or 693 other characteristic of the communications channel between the 694 gaming system and the playing device used by the player. 695 (f) An Internet poker hub operator shall deploy controls 696 and technology to ensure the ability to minimize fraud or 697 cheating through collusion, such as external exchange of 698 information between different players, or any other means. 699 1. If an Internet poker hub operator becomes aware that 700 fraud or cheating is taking place or has taken place, it shall 701 immediately take steps to stop such activities and inform the 702 division of all relevant facts. 703 2. An Internet poker hub operator shall immediately inform 704 the division of any complaints of fraud or collusion and shall 705 investigate whether the complaints are true and shall 706 expeditiously act to prevent further fraud or collusion from 707 taking place on the Internet poker hub. An Internet poker hub 708 operator shall report the results of the investigation in 709 writing to the division within 24 hours after the complaint and 710 shall continue to report every 24 hours until its investigation 711 is concluded. This paragraph does not prevent the division from 712 conducting an independent investigation or initiating an 713 administrative action to protect registered players from fraud 714 and collusion on the Internet poker hub site and does not 715 prohibit a registered player, the Internet poker hub operator, a 716 cardroom affiliate, or the division from reporting suspected 717 criminal activities to law enforcement officials. 718 3. A registered player may not bring an action for damages 719 against an Internet poker hub operator for preventing fraud or 720 cheating or attempting to prevent fraud or cheating if the 721 Internet poker hub operator can demonstrate that it acted to 722 prevent such actions as soon as it became aware of them. 723 (g) If the gaming server or software does not allow a game 724 to be completed, the hand shall be voided and all funds relating 725 to the incomplete hand shall be returned to the registered 726 player’s account. 727 (16) REGISTERED PLAYERS; ELIGIBILITY.— 728 (a) All registered players must be located within this 729 state at the time of play of intrastate Internet poker. 730 (b) A person who has not attained 18 years of age may not 731 be a registered player or play intrastate Internet poker. 732 (c) All Internet poker hub operators and cardroom 733 affiliates shall exclude from play any person who has submitted 734 a completed Internet Poker Self-Exclusion Form. 735 1. All Internet poker hub operators and cardroom affiliates 736 shall have an Internet Poker Self-Exclusion Form available 737 online and accessible on the Internet page that is displayed 738 when: 739 a. A person opens the Internet page to register as a 740 registered player; or 741 b. A registered player accesses the first page of the 742 Internet page prior to playing. 743 2. Upon receipt of a completed Internet Poker Self 744 Exclusion Form, an Internet poker hub operator or cardroom 745 affiliate shall immediately provide a copy of the completed form 746 to each Internet poker hub operator, each cardroom affiliate, 747 and the division. The division shall ensure that all other 748 cardroom affiliates exclude the person from the play of 749 intrastate Internet poker. 750 3. Each Internet poker hub operator and cardroom affiliate 751 shall retain the original form to identify persons who request 752 to be excluded from play. 753 4. Each Internet poker hub operator and cardroom affiliate 754 shall prominently display a link to the website of a responsible 755 gaming organization that is under contract with the division 756 pursuant to s. 551.118(2) for services related to the prevention 757 of compulsive and addictive gambling. 758 5. A person may not bring any action against an Internet 759 poker hub operator or a cardroom affiliate for negligence or any 760 other claim if a person who has filled out an Internet Poker 761 Self-Exclusion Form gains access and plays despite the request 762 to be excluded. 763 (17) REGISTERED PLAYER ACCOUNTS.— 764 (a) An Internet poker hub operator shall register players 765 and establish registered player accounts prior to play and shall 766 ensure that the player's personally identifiable information is 767 accessible to the player and regulators but is otherwise secure. 768 (b) A person may not participate in any game on a state 769 Internet poker network unless the person is registered as a 770 player and holds an account. 771 (c) Accounts may be established in person or by mail, 772 telephone, or any electronic means. 773 (d) To register and establish an account, a person must 774 provide the following registration information: 775 1. First name and surname. 776 2. Principal residence address. 777 3. Telephone number. 778 4. Social security number. 779 5. Legal identification or certification to prove that the 780 person is at least 18 years of age. 781 6. Valid email address. 782 7. The source of funds to be used to establish the account 783 after the registration process is complete. 784 (e) Prior to completing the registration process, an 785 Internet poker hub operator shall explain to the person in a 786 conspicuous fashion the privacy policies of the Internet poker 787 hub, and the person must assent to the following policies: 788 1. Personal identifying information will not be shared with 789 any nongovernment third parties except for licensed 790 subcontractors of an Internet poker hub operator for the sole 791 purpose of permitting registered players to participate in games 792 on the Internet poker hub or upon receipt of a court order to 793 subpoena such information from the Internet poker hub. 794 2. All personally identifiable information about registered 795 players will be shared with the division, the Department of Law 796 Enforcement, and any other governmental agency that receives a 797 court order to subpoena such information. 798 (f) An Internet poker hub operator shall also require that 799 a person agree to the terms of a use agreement applying to 800 registered players. 801 (g) An Internet poker hub operator shall provide a 802 registered player with the means to update the information 803 provided in paragraph (d). 804 (h) An Internet poker hub operator may revoke the accounts 805 of a registered player for the following reasons: 806 1. The registered player provided false information in the 807 registration process; 808 2. The registered player has not updated registration 809 information to keep it current; or 810 3. The registered player has violated an Internet poker hub 811 operator’s terms of use agreement. 812 (i) An Internet poker hub operator may suspend or revoke 813 the account of a registered player if the operator suspects the 814 registered player has participated in illegal activity on a 815 state Internet poker network. 816 (j) An Internet poker hub operator shall establish and 817 maintain an account for each registered player. An Internet 818 poker hub operator shall: 819 1. Provide a means for a registered player to put funds 820 into an account; however, a registered player may not increase 821 the amount in an account after a game has started and before its 822 completion. 823 2. Maintain records on the balance of each registered 824 player’s account. 825 3. Prohibit a registered player from placing a wager unless 826 the player’s account has sufficient funds to cover the amount of 827 the wager. 828 4. Not provide credit to a registered player’s account or 829 act as an agent for a credit provider to facilitate the 830 provision of funds. 831 5. Provide a means for a registered player to transfer 832 money out of the player’s account. 833 (k) An Internet poker hub operator shall put in place other 834 systems that provide registered players with the ability to 835 control aspects of their play. Upon registration and at each 836 time when a registered player logs on to a state Internet poker 837 network, an Internet poker hub operator shall permit the 838 registered player to adjust the player’s play settings to: 839 1. Set a limit on the deposits that can be made per day; 840 2. Set a limit on the amount that can be wagered within a 841 specified period of time; 842 3. Set a limit on the losses that may incur within a 843 specified period of time; 844 4. Set a limit on the amount of time that can be played 845 after logging on to the Internet poker hub; or 846 5. Prevent the Internet poker hub from allowing the 847 registered player to play for an indefinite period of time. 848 (l) During play, in order to assist a registered player to 849 decide whether to suspend play, the registered player’s screen 850 shall: 851 1. Indicate how long the player has been playing; 852 2. Indicate the player’s winnings or losses since the time 853 of last logging in; 854 3. Give an option to the player to end the session or 855 return to the game; and 856 4. Require the player to confirm that the player has read 857 the message. 858 (18) REGISTERED PLAYER ACCOUNTS; RECORDS AND REPORTS.— 859 (a) An Internet poker hub operator shall establish a book 860 of accounts, regularly audit, and make all financial records 861 available to the division. An Internet poker hub operator shall 862 demonstrate that it has a system of maintaining records and 863 reports that are readily available to the division. The records 864 and reports shall include the following: 865 1. Monthly auditable and aggregate financial statements of 866 gaming transactions. 867 2. Calculation of all fees payable to government. 868 3. The identity of players. 869 4. The balance on the player’s account at the start of a 870 session of play. 871 5. The wagers placed on each game time stamped by the games 872 server. 873 6. The result of each game time stamped by the games 874 server. 875 7. The amount won or lost by the player. 876 8. The balance on the player’s account at the end of the 877 game. 878 (b) An Internet poker hub operator shall reconcile all data 879 logs files regarding the registered players’ accounts on a 880 monthly basis. 881 (19) INTERNET POKER HUB OPERATOR; OBLIGATIONS; TECHNICAL 882 SYSTEMS REQUIREMENTS.— 883 (a) Before an Internet poker hub operator can begin 884 intrastate Internet poker operations, an Internet poker hub 885 operator shall establish a physical site in the state that will 886 house the game and database servers and other components and 887 equipment necessary to conduct intrastate Internet poker. In 888 addition, managerial employees of the Internet poker hub 889 operator who manage or oversee the daily operations of the 890 Internet poker hub network must reside in the state. 891 (a) An Internet poker hub operator shall put in place 892 technical systems that materially aid the division in fulfilling 893 its regulatory, consumer protection, and revenue-raising 894 functions and allow the division unrestricted access to and the 895 right to inspect the technical systems. 896 (b) An Internet poker hub operator shall ensure that the 897 network is protected from manipulation or tampering to affect 898 the random probabilities of winning plays. 899 (c) An Internet poker hub operator shall define and 900 document its methodology for the following: 901 1. The development, implementation, and maintenance of 902 gaming software in a manner representative of industry best 903 practice standards. 904 2. Server connectivity requirements that include: 905 a. Minimum game server connectivity requirements that 906 ensure players are protected from losses due to connectivity 907 problems. 908 b. The system’s ability to recover all transactions 909 involving player funds in the event of a failure or malfunction. 910 c. Aborted game procedures. 911 3. Ability of the system to recover all information 912 required for viewing a game interrupted due to loss of 913 connectivity. 914 4. Consumer protection requirements. 915 5. Responsible advertising, marketing, and promotion that 916 ensure that players are not misled through advertising or 917 promotional activities, and will ensure that the terms and 918 conditions of their promotions are followed. 919 6. Anti-money-laundering controls. 920 7. Preventive and detective controls addressing money 921 laundering and fraud risks which shall be documented and 922 implemented. 923 (d) An Internet poker hub operator shall retain all such 924 documentation for at least 12 months. 925 (20) FEE FOR PARTICIPATION.—An Internet poker hub operator 926 shall charge a fee or a tournament fee to registered players for 927 the right to participate in authorized games or tournaments 928 conducted on a state Internet poker network. The participation 929 fee may be a per-hand charge, a flat fee, an hourly rate, or a 930 rake subject to the posted maximum amount but may not be based 931 on the amount won by players. The fee shall be designated and 932 conspicuously posted on the registered player’s screen prior to 933 the start of each proposed or authorized game. 934 (21) PROHIBITED RELATIONSHIPS.— 935 (a) A proprietorship, partnership, corporation, 936 subcontractor, or other entity must obtain a valid intrastate 937 Internet poker business occupational license issued by the 938 division to partner with, contract with, be associated with, or 939 participate in the conduct of intrastate Internet poker 940 operations with an Internet poker hub operator or a cardroom 941 affiliate. 942 (b) A person employed by or performing any function on 943 behalf of the division may not: 944 1. Be an officer, director, owner, or employee of any 945 person or entity licensed by the division. 946 2. Have or hold any interest, direct or indirect, in or 947 engage in any commerce or business relationship with any person 948 licensed by the division. 949 (c) An employee of the division or a relative living in the 950 same household as the employee may not play at any time on a 951 state Internet poker network. 952 (d) An occupational licensee of an Internet poker hub 953 operator or a relative living in the same household as the 954 occupational licensee may not play at any time on a state 955 Internet poker network. This paragraph does not apply to an 956 occupational licensee of a cardroom affiliate. 957 (e) A cardroom affiliate licensee may not sell or lease all 958 or a portion of a percentage of its cardroom licensed under s. 959 849.086 to any person or entity who has accepted any wager of 960 money or other consideration on any online gambling activity, 961 including poker, from any Florida resident since October 13, 962 2006. This paragraph does not apply if the person or entity who 963 accepted the wager is licensed as an Internet poker hub operator 964 or cardroom affiliate. 965 (f) A cardroom affiliate licensee may not contract with any 966 person or entity to operate the cardroom affiliate's portal link 967 to the state Internet poker network on its website, to conduct 968 marketing or promotional activities, or to conduct any other 969 aspects of business associated with the play of intrastate 970 Internet poker if that person or entity has accepted any wager 971 of money or other consideration on any online gambling activity, 972 including poker, from any Florida resident since October 13, 973 2006. This paragraph does not apply if the person or entity who 974 accepted the wager is licensed as an Internet poker hub operator 975 or cardroom affiliate. 976 (22) PROHIBITED ACTS; PENALTIES.— 977 (a) An Internet poker hub operator may conduct any proposed 978 or authorized game under subsection (16) unless specifically 979 prohibited by the division or by this section. 980 (b) A person who has not attained 18 years of age may not 981 hold an intrastate Internet poker occupational license or engage 982 in any game conducted therein. 983 (c) It is a violation of the laws of this state for any 984 entity to offer Internet poker for free or for money or any 985 other consideration to individuals present in this state unless 986 that entity can demonstrate that it is in compliance with the 987 laws and tax regulations of the United States and of this state. 988 (d) Any entity that has accepted any wager of money or 989 other consideration on any online gambling activity, including 990 poker, from any Florida resident since October 13, 2006, is not 991 eligible to apply for licensure and participate in intrastate 992 Internet poker in this state for a period of 3 years after the 993 effective date of this act. However, this prohibition does not 994 disqualify an applicant or subcontractor who accepts online 995 pari-mutuel wagers from any Florida resident through a legal 996 online pari-mutuel wagering entity authorized in another state. 997 (e) Except as otherwise provided by law and in addition to 998 any other penalty, any person who knowingly makes or causes to 999 be made, or aids, assists, or procures another to make, a false 1000 statement in any report, disclosure, application, or other 1001 document required under this section or any rule adopted under 1002 this section is subject to an administrative fine of up to 1003 $10,000. 1004 (f) Any person who manipulates or attempts to manipulate 1005 the outcome, payoff, or operation of the play of intrastate 1006 Internet poker by tampering, collusion, or fraud, or by the use 1007 of any object, instrument, or device, by any means, commits a 1008 felony of the third degree, punishable as provided in s. 1009 775.082, s. 775.083, or s. 775.084. 1010 (g) All penalties imposed and collected under this 1011 subsection shall be deposited into the Pari-mutuel Wagering 1012 Trust Fund. 1013 (23) LICENSE FEES.— 1014 (a) Upon submission of the initial application and 1015 proposal, the applicant for an Internet poker hub operator 1016 license shall pay an initial filing fee of $25,000 to compensate 1017 the division for reasonably anticipated costs to be incurred to 1018 conduct a comprehensive investigation of the applicant to 1019 determine if the applicant is legally, technically, and 1020 financially qualified to become an Internet poker hub operator 1021 and is suitable for licensure. The division shall, by rule, 1022 require the applicant to make an additional payment if necessary 1023 to complete the investigation; however, the total amount 1024 collected under this paragraph may not exceed the actual cost 1025 incurred to conduct the investigation. The division shall, by 1026 rule, set a procedure for refunding any amount of the filing fee 1027 and additional payment collected under this paragraph which is 1028 not used to cover the cost of the investigation. 1029 (b) Upon submission of the initial application for an 1030 Internet poker hub operator license, and annually thereafter, on 1031 the anniversary date of the issuance of the initial license, an 1032 internet poker hub operator licensee shall pay a nonrefundable 1033 license fee of $500,000 for the succeeding 12 months of 1034 licensure to fund the division’s regulation and oversight of the 1035 operation and play of intrastate Internet poker. 1036 (c) Upon submission of the initial application for a 1037 cardroom affiliate license, and annually thereafter, as required 1038 in subsection (11)(b), a cardroom affiliate licensee shall pay a 1039 nonrefundable license fee of $1,000 for the succeeding 12 months 1040 of licensure. 1041 (d) All funds received under this section shall be 1042 deposited by the division with the Chief Financial Officer to 1043 the credit of the Pari-mutuel Wagering Trust Fund. 1044 (24) ADVANCE PAYMENT BY AN INTERNET POKER HUB OPERATOR. 1045 Upon the awarding of a contract to be an Internet poker hub 1046 operator by the division under subsection (6), an Internet poker 1047 hub operator licensee shall pay to the division a nonrefundable 1048 payment of $10 million. This payment shall be treated as an 1049 advance payment to the state by each Internet poker hub operator 1050 and shall be credited against the tax on monthly gross receipts 1051 derived from the play of intrastate Internet poker under 1052 paragraph (25)(a) until the original amount is recouped by each 1053 Internet poker hub operator. 1054 (25) TAX RATE; OTHER PAYMENTS; PENALTIES.— 1055 (a) Each Internet poker hub operator shall pay a tax to the 1056 state of 10 percent of the operator’s monthly gross receipts 1057 derived from the play of intrastate Internet poker. However, an 1058 Internet poker hub operator shall pay no taxes under this 1059 paragraph until the full amount of the advance payment made by 1060 that poker hub operator under subsection (24) has been credited 1061 against the tax. Credit of the advance payment toward the tax 1062 shall be made upon receipt by the division of the monthly report 1063 required under paragraph (b). 1064 (b) The gross receipts tax imposed by this section shall be 1065 paid to the division. Each Internet poker hub operator shall 1066 remit the gross receipts tax and licensee fees to the division 1067 to be deposited with the Chief Financial Officer, to the credit 1068 of the Pari-mutuel Wagering Trust Fund. Such payments shall be 1069 remitted to the division by electronic funds transfer on the 5th 1070 day of each calendar month for taxes and fees imposed for the 1071 preceding month’s intrastate Internet poker activities. 1072 Licensees shall file a report under oath by the 5th day of each 1073 calendar month for all taxes remitted during the preceding 1074 calendar month. Such payments shall be accompanied by a report 1075 under oath showing all intrastate Internet poker activities for 1076 the preceding calendar month and such other information as may 1077 be prescribed by the division. 1078 (c) A licensee who fails to make tax payments as required 1079 under this section is subject to an administrative penalty of up 1080 to $10,000 for each day the tax payment is not remitted. All 1081 penalties imposed and collected under this subsection shall be 1082 deposited in the Pari-mutuel Wagering Trust Fund. If a licensee 1083 fails to pay penalties imposed by order of the division under 1084 this subsection, the division may suspend, revoke, or refuse to 1085 renew the license of an Internet poker hub operator or cardroom 1086 affiliate. 1087 (d) All of the moneys deposited in the Pari-mutuel Wagering 1088 Trust Fund under this section shall be utilized and distributed 1089 in the manner specified in s. 550.135(1) and (2). 1090 (26) DISTRIBUTION OF INCOME DERIVED FROM THE PLAY OF 1091 INTERNET POKER.— 1092 (a) After the tax on the monthly gross receipts derived 1093 from the play of intrastate Internet poker is paid to the state 1094 as specified under subsection (25), the remaining monthly gross 1095 receipts shall be distributed by the Internet poker hub 1096 operators as follows: 1097 1. Seventy percent shall be distributed to eligible 1098 licensed cardroom affiliates. 1099 a.(I) Fifty percent shall be divided and distributed among 1100 the cardroom affiliates based on each cardroom affiliate’s total 1101 rake generated from the play of authorized games defined in s. 1102 849.086(2)(a) for the previous state fiscal year divided by the 1103 total previous year’s rake for all the cardroom affiliates, as 1104 determined by the division. 1105 (II) Fifty percent shall be divided and distributed to the 1106 cardroom affiliates based on the amount wagered for the previous 1107 month through each cardroom affiliate’s portal as determined by 1108 the division, divided by the total amount wagered for the 1109 previous month through all cardroom affiliates’ portals. 1110 b. If two or more cardroom affiliates join together to 1111 operate a portal for purposes of sub-sub-subparagraphs b.(I) and 1112 (II), their portal wagers and previous year’s rake shall be 1113 combined. 1114 c. Each permitholder that receives payments under this 1115 subparagraph shall use at least 4 percent of its monthly gross 1116 receipts from the play of intrastate Internet poker to 1117 supplement pari-mutuel purses or prize money, respectively, 1118 during the permitholder’s current meet or no later than the next 1119 ensuing pari-mutuel meet. 1120 2. Twenty-five percent shall be retained by the Internet 1121 poker hub operators from which they shall pay all costs for the 1122 intrastate Internet poker hub operations. 1123 3. Four percent shall be retained by the Internet poker hub 1124 operators to fund statewide advertising, marketing, and 1125 promotion of the play of intrastate Internet poker on a state 1126 Internet poker network. The division shall perform an annual 1127 audit to verify that the Internet poker hub operators use such 1128 funds solely for the statewide advertising, marketing, and 1129 promotion of the play of intrastate Internet poker on a state 1130 Internet poker network. 1131 4. One percent shall fund services related to the 1132 prevention and treatment of compulsive and addictive gambling 1133 provided by the entity that is under contract with the division 1134 under s. 551.118(2). The division shall be responsible for the 1135 distribution and audit of the funds under this subparagraph. 1136 (b) The distribution of the preceding monthly gross 1137 receipts shall be by the 20th day of each calendar month. 1138 (c) The division shall ensure that all distributions are 1139 made in accordance with this section and may adopt rules to 1140 ensure the implementation and proper distribution of funds. 1141 (d) This subsection does not prevent individual cardrooms 1142 or a number of cardroom affiliates from joining together in a 1143 coalition for the purpose of the marketing and promotion of the 1144 play of intrastate Internet poker on a state Internet poker 1145 network. 1146 (27) SUSPENSION, REVOCATION, OR DENIAL OF LICENSE.— 1147 (a) The division may deny a license or the renewal of a 1148 license, or may suspend or revoke any license, when the 1149 applicant has: violated or failed to comply with section or any 1150 rule adopted pursuant to this section; knowingly caused, aided, 1151 abetted, or conspired with another to cause any person to 1152 violate this section or any rule adopted pursuant to this 1153 section; or obtained a license or permit by fraud, 1154 misrepresentation, or concealment; or if the holder of the 1155 license is no longer eligible under this section. 1156 (b) If a cardroom affiliate’s pari-mutuel permit or license 1157 is suspended or revoked by the division pursuant to chapter 550, 1158 or its cardroom operator’s license is suspended or revoked by 1159 the division pursuant to s. 849.086, the division shall suspend 1160 or revoke the cardroom affiliate’s license. If a cardroom 1161 affiliate’s license is suspended or revoked under this section, 1162 the division may, but is not required to, suspend or revoke the 1163 licensee’s cardroom operator’s license. 1164 (28) PENALTIES.— The division may revoke or suspend any 1165 Internet poker hub operator license or cardroom affiliate 1166 license issued under this section upon the willful violation by 1167 the licensee of this section or any rule adopted pursuant to 1168 this section. 1169 (a) Notwithstanding any other provision of law, the 1170 division may impose an administrative fine not to exceed $10,000 1171 for each violation against any person who has violated or failed 1172 to comply with this section or any rule adopted pursuant to this 1173 section. 1174 (b) Nothwithstanding any other provision of law, the 1175 division may impose an administrative fine, not exceeding 1176 $100,000 for each count or separate offense, upon an Internet 1177 poker hub operator or a cardroom affiliate for willfully 1178 violating this section or any rule adopted pursuant to this 1179 section. 1180 (c) All penalties imposed and collected under this section 1181 shall be deposited into the Pari-mutuel Wagering Trust Fund. 1182 (29) RULEMAKING.—The division may adopt rules pursuant to 1183 ss. 120.536(1) and 120.54 to administer the provisions of this 1184 section. 1185 (30) LEGISLATIVE AUTHORITY; ADMINISTRATION OF SECTION.—The 1186 Legislature finds and declares that it has exclusive authority 1187 over the conduct of intrastate Internet poker in this state. 1188 Only the Division of Pari-mutuel Wagering and other authorized 1189 state agencies shall administer this section and regulate the 1190 intrastate Internet poker industry in the state, including 1191 operation of all Internet poker hub operators and cardroom 1192 affiliates, play of authorized games, and the Internet poker 1193 computer systems authorized in this section, as provided by law 1194 and rules adopted by the division. 1195 Section 3. This act shall take effect July 1, 2011. 1196 1197 1198 ================= T I T L E A M E N D M E N T ================ 1199 And the title is amended as follows: 1200 Delete everything before the enacting clause 1201 and insert: 1202 A bill to be entitled 1203 An act relating to Internet poker; creating the 1204 “Internet Poker Consumer Protection and Revenue 1205 Generation Act”; providing for intrastate Internet 1206 poker to be provided to the public by cardroom 1207 operators through a state Internet poker network 1208 operated by licensed Internet poker hub operators; 1209 creating s. 849.087, F.S.; providing legislative 1210 intent; providing definitions; authorizing 1211 participation in and operation of intrastate Internet 1212 poker; providing for the Division of Pari-mutuel 1213 Wagering of the Department of Business and 1214 Professional Regulation to administer the act and 1215 regulate the operation of a state Internet poker 1216 network, Internet poker hub operators, cardroom 1217 affiliates, and the playing of intrastate Internet 1218 poker; authorizing the division to adopt rules, 1219 conduct investigations and monitor operations, review 1220 books and accounts and records, suspend or revoke any 1221 license or permit for a violation, take testimony, 1222 issue summons and subpoenas, monitor and ensure the 1223 proper collection of taxes and fees, and monitor and 1224 ensure that the playing of Internet poker is conducted 1225 fairly and that player information is protected by 1226 Internet poker hub operators; requiring Internet poker 1227 hub operators to be licensed; providing qualifications 1228 and conditions for licensure; providing application 1229 requirements; providing for an advance payment to be 1230 credited toward taxes; providing initial and renewal 1231 license fees; providing for selection of Internet 1232 poker hub operators through competitive procurement 1233 process; requiring payment of certain costs and refund 1234 of amounts collected in excess of the cost; requiring 1235 a surety bond; providing for a contract between the 1236 state and the poker hub operator; requiring the 1237 division to annually determine the need for additional 1238 operators; providing for a cardroom affiliate license 1239 to be issued to a cardroom operator to provide 1240 intrastate Internet poker for play; providing for 1241 applications for the affiliate license and renewal 1242 thereof; providing conditions for licensure and 1243 renewal of licensure as an affiliate; requiring 1244 reporting to and approval by the division of a change 1245 of ownership of the affiliate licensee; prohibiting 1246 certain acts by an affiliate; providing a fee; 1247 providing for employee and business occupational 1248 licenses; requiring certain employees of and certain 1249 companies doing business with a cardroom affiliate or 1250 an Internet poker hub operator to hold an appropriate 1251 occupational license; prohibiting such operator or 1252 affiliate from employing or allowing to be employed 1253 such a person or doing business with such a company if 1254 that person or company does not hold an occupational 1255 license; directing the division to adopt rules 1256 regarding Internet poker hub operator, cardroom 1257 affiliate, and occupational licenses and renewal of 1258 such licenses; providing a fee for occupational 1259 license and renewal thereof; providing penalties for 1260 failure to pay the fee; exempting from licensure a 1261 person holding a valid individual cardroom 1262 occupational license; providing grounds for the 1263 division to deny an application for or revoke, 1264 suspend, or place conditions or restrictions on or 1265 refuse to renew such occupational license; requiring 1266 fingerprints; providing procedures for processing 1267 fingerprints and conducting a criminal history records 1268 check and for payment of costs; providing for 1269 citations and civil penalties; providing requirements 1270 to register and play intrastate Internet poker; 1271 providing for an Internet Poker Self-Exclusion Form; 1272 requiring the Internet poker hub operator to exclude 1273 from play any person who has completed such form; 1274 providing for maintenance of the form and distribution 1275 to cardroom affiliates and the division; requiring the 1276 Internet poker hub operator to display a link to the 1277 website offering services related to the prevention of 1278 compulsive and addictive gambling; limiting liability; 1279 providing requirements for approval of games to be 1280 offered to players; providing requirements for all 1281 offered games and game results and games not 1282 completed; providing requirements to minimize fraud 1283 and cheating; prohibiting action for damages against 1284 the Internet poker hub operator to prevent fraud or 1285 cheating under certain circumstances; providing 1286 requirements for player eligibility and registration 1287 and player accounts; authorizing the Internet poker 1288 hub operator to suspend or revoke player accounts; 1289 providing requirements for poker hub operations; 1290 requiring the Internet poker hub operator to establish 1291 a book of accounts, regularly audit financial records, 1292 and make the records available to the division; 1293 providing technical system requirements; requiring the 1294 Internet poker hub operator to define, document, and 1295 implement certain methodologies relating to its 1296 systems; requiring the Internet poker hub operator to 1297 maintain such documentation for a certain period of 1298 time; providing for player participation fees; 1299 prohibiting certain relationships and acts by 1300 employees of the division and occupational license 1301 holders and certain relatives; authorizing conduct of 1302 proposed and authorized games; prohibiting a person 1303 who has not attained a certain age from holding an 1304 Internet poker occupational license or engaging in any 1305 game conducted; prohibiting offering Internet poker to 1306 persons located in the state except in compliance with 1307 law; providing that an entity that has accepted any 1308 wager on any online gambling activity from a Florida 1309 resident since a certain date is not eligible to apply 1310 for licensure and participate in intrastate Internet 1311 poker in Florida for a specified period of time; 1312 prohibiting false statements; prohibiting manipulation 1313 of Internet poker play and operations; providing civil 1314 and criminal penalties; providing for disposition of 1315 fines collected; providing for license fees to be paid 1316 by the Internet poker hub operator and cardroom 1317 affiliates; providing for disposition and accounting 1318 of fees collected; providing for an advance payment by 1319 the Internet poker hub operator to be credited toward 1320 taxes; providing for the tax rate and procedures for 1321 payment; requiring payments to be accompanied by a 1322 report showing all intrastate Internet poker 1323 activities for the preceding calendar month and 1324 containing such other information as prescribed by the 1325 division; providing penalties for failure to pay taxes 1326 and penalties; providing for use of certain deposits; 1327 providing for distribution of moneys received from 1328 Internet poker hub operations; providing grounds for 1329 the division to deny a license or the renewal thereof 1330 or suspend or revoke a license; providing penalties; 1331 authorizing the division to adopt rules; providing for 1332 administration of the act and regulation of the 1333 intrastate Internet poker industry; providing an 1334 effective date.