HB 1441

1
A bill to be entitled
2An act relating to Internet poker; creating the "Internet
3Poker Consumer Protection and Revenue Generation Act of
42010"; providing for intrastate Internet poker to be
5provided to the public by cardroom operators through a
6state Internet poker network operated by Internet poker
7hub operators; amending s. 849.087, F.S.; providing
8legislative intent; providing definitions; authorizing a
9person in the state to participate in an authorized game
10of poker or a poker tournament; authorizing a person to
11operate the state Internet poker network; providing
12authority to Division of Pari-mutuel Wagering of the
13Department of Business and Professional Regulation to
14administer the act and regulate the operation of the state
15Internet poker network, the Internet poker hub operator,
16the cardroom affiliates, and the play of intrastate
17Internet poker; authorizing the division to adopt rules,
18conduct investigations and monitor the operations, review
19books and accounts and records, suspend or revoke any
20license or permit for any violation, take testimony, issue
21summons and subpoenas, and monitor and ensure the proper
22collection of taxes and fees; requiring Internet poker hub
23operators to be licensed; providing qualifications and
24conditions for such licensure; requiring reporting to and
25approval by the division of a change in ownership under
26certain conditions; requiring certain license fees;
27providing for use of fees collected; providing for the
28division to request proposals for Internet poker hub
29operators to provide services for intrastate Internet
30poker games; providing conditions for such proposals;
31requiring a filing fee; providing for refunding of excess
32filing fees; requiring an applicant for an Internet poker
33hub operator license to provide evidence of a surety bond;
34requiring the bond to meet certain conditions; providing
35for governance of the contract between the Internet poker
36hub operator and the state; providing for amendment of the
37contract; providing for effect of changes to the law;
38providing procedures for abandonment of the contract;
39providing for contract disputes; providing for a cardroom
40affiliate license to be issued to a cardroom operator;
41requiring such license to provide intrastate Internet
42poker for play to users; providing for annual renewal of
43the affiliate license; providing for applications for the
44affiliate license and renewal thereof; providing
45conditions for licensure as an affiliate; requiring
46reporting to and approval by the division of a change of
47ownership of the affiliate license; providing a fee for
48the affiliate license; providing for business and employee
49occupational licenses; requiring certain employees of and
50certain companies doing business with a cardroom affiliate
51or an Internet poker hub operator to hold an appropriate
52occupational license; prohibiting such operator or
53affiliate from employing or allowing to be employed such a
54person or doing business with such company if that person
55or company does not hold an occupational license;
56directing the division to adopt by rule a schedule for
57renewal of such occupational licenses; providing that such
58occupational licenses are not transferrable; providing for
59applications for occupational licenses and renewal
60thereof; directing the division to adopt rules regarding
61such occupational licenses and applications for such
62licenses; providing that such occupational license is
63valid for a certain time period and at any Internet hub
64operator or cardroom affiliate; providing for a fee for
65initial and renewal applications for such occupational
66licenses; providing penalties for failure to pay the fee;
67providing grounds for the division to deny an application
68for or revoke, suspend, or place conditions or
69restrictions on or refuse to renew such occupational
70license; requiring fingerprints for all such occupational
71license applications which shall be taken in a manner
72approved by the division and submitted electronically to
73the Department of Law Enforcement for state processing and
74the Federal Bureau of Investigation for national
75processing; providing exceptions; defining the term
76"conviction"; providing for costs of processing and
77retaining fingerprints and conducting a criminal history
78records check; providing procedures for processing
79fingerprints and conducting a criminal history records
80check and for payment of costs; providing for citations
81and civil penalties; providing requirements to register
82and play intrastate Internet poker; providing for an
83Internet Poker Self-Exclusion Form; requiring the Internet
84hub operator to exclude from play any person who has
85completed such form; providing for maintenance of the form
86and distribution to cardroom affiliates and the division;
87requiring the Internet poker hub operator to display a
88link to the website offering services related to the
89prevention of compulsive and addictive gambling; limiting
90liability should a person who has completed such form gain
91access to and play Internet poker; providing requirements
92for approval of games to be offered to players; providing
93requirements for all offered games and game results;
94providing requirements to minimize fraud and cheating;
95prohibiting action for damages against the Internet poker
96hub operator to prevent fraud or cheating under certain
97circumstances; providing for games when play cannot be
98completed; providing for player registration and player
99accounts to be established by the Internet poker hub
100operator; requiring a person to be registered and have a
101player account before participation in any game; providing
102procedures and requirements for registration; providing
103for a privacy policy and a terms of use agreement;
104providing grounds for the Internet poker hub operator to
105suspend or revoke the account of a registered player;
106providing responsibilities of the Internet poker hub
107operator for maintenance of player accounts and for
108providing certain system functions; requiring the Internet
109poker hub operator to establish a book of accounts,
110regularly audit financial records, and make the records
111available to the division; requiring the Internet poker
112hub operator to maintain a system of maintaining records
113and reports that are readily available to the division;
114providing for content of such records and reports;
115requiring player accounts to be reconciled monthly;
116providing technical system requirements; requiring the
117Internet poker hub operator to define, document, and
118implement certain methodologies relating to its systems;
119requiring the Internet poker hub operator to maintain such
120documentation for a certain period of time; providing for
121player fees; prohibiting certain relationships and acts by
122employees of the division and occupational license holders
123and certain relatives; prohibiting games not authorized
124and play by a person who has not attained a certain age;
125prohibiting false statements; providing penalties;
126providing for disposition of fines collected; providing
127for license fees and taxes to be paid by the Internet
128poker hub operator; providing for disposition of fees and
129taxes collected; requiring payments to be accompanied by a
130report showing all intrastate Internet poker activities
131for the preceding calendar month and containing such other
132information as prescribed by the division; requiring
133cardroom affiliates to use a portion of receipts to
134supplement pari-mutuel purses; providing penalties for
135failure to pay taxes and penalties; providing for use of
136certain deposits; providing grounds for the division to
137deny a license or the renewal thereof or suspend or revoke
138a license; providing penalties; authorizing the division
139to adopt rules; providing for administration of the act
140and regulation of the intrastate Internet poker industry;
141providing an effective date.
142
143Be It Enacted by the Legislature of the State of Florida:
144
145     Section 1.  This act may be cited as the "Internet Poker
146Consumer Protection and Revenue Generation Act of 2010."
147     Section 2.  Section 849.087, Florida Statutes, is created
148to read:
149     849.087  Intrastate Internet poker authorized.-
150     (1)  LEGISLATIVE INTENT.-It is the intent of the
151Legislature to create a framework for the state to regulate
152intrastate Internet poker sites that can ensure consumer
153protections and additional revenue to the state by authorizing,
154implementing, and creating a licensing and regulatory structure
155and system of Internet poker to:
156     (a)  Ensure that intrastate Internet poker is only offered
157for play in a manner that is lawful under the federal Unlawful
158Internet Gaming Enforcement Act of 2006 which authorizes a state
159to regulate and conduct intrastate Internet gambling, such as
160poker.
161     (b)  Provide a new source of revenue that will generate
162additional positive economic benefits to the state instead of
163flowing offshore to unregulated foreign operators and markets.
164     (c)  Create a contractual relationship with an Internet
165poker hub operator with the technical expertise to ensure that
166wagering authorized by this section is only offered to
167registered players who are physically present within the borders
168of this state at the time of play and who are at least 21 years
169of age or older.
170     (d)  Provide for a competitive procurement process to
171select Internet poker hub operators that are qualified to be
172licensed by the state and meet all statutory, regulatory, and
173contractual requirements of the state while protecting
174registered poker players.
175     (e)  Provide for a licensed cardroom operator to become a
176licensed provider of intrastate Internet poker through licensed
177Internet poker hub operators.
178     (f)  Ensure that the state is able to collect all taxes and
179fees revenues from the play of intrastate Internet poker.
180     (g)  Create a system to protect each registered poker
181player's private information and prevent fraud and identity
182theft and ensure that their financial transactions are processed
183in a secure and transparent fashion.
184     (h)  Ensure that the regulatory agency has unlimited access
185to the premises and records of the licensed Internet poker hub
186operator and cardroom affiliates to ensure strict compliance
187with its regulations concerning credit authorization, account
188access, and other security provisions.
189     (i)  Require that the Internet poker hub operators provide
190registered poker players with accessible customer service.
191     (j)  Require that the Internet poker hub operator's site
192contains information relating to problem gambling, including a
193telephone number that an individual may call to seek information
194and assistance for a potential gambling addiction.
195     (2)  DEFINITIONS.-As used in this section:
196     (a)  "Authorized game" means a game or series of games of
197poker which are played in a nonbanking manner through the state
198Internet poker network.
199     (b)  "Cardroom affiliate" means a licensed cardroom
200operator as defined in s. 849.086(2)(f) who maintains an
201Internet website as a portal into the state Internet poker
202network.
203     (c)  "Division" means the Division of Pari-mutuel Wagering
204of the Department of Business and Professional Regulation.
205     (d)  "Gross receipts" means the total amount of money
206received by the Internet poker hub operator from registered
207players for participation in authorized games.
208     (e)  "Internet poker hub operator" means a system operator
209that the state contracts with to operate the intrastate Internet
210poker network.
211     (f)  "Intrastate Internet poker" means the playing of
212authorized games of poker over the Internet by registered
213players who must be physically present within the borders of
214this state at the time of play.
215     (g)  "Liquidity" means the total number of registered
216players available in the state Internet poker network.
217     (h)  "Net proceeds" means the total amount of gross
218receipts received by the Internet poker hub operator from
219intrastate Internet poker operations less direct operating
220expenses related to the Internet poker hub operations, including
221labor costs, gross receipts taxes imposed on the Internet poker
222hub operator by this section, the business and occupational
223license fees imposed by this section, the fees paid to cardroom
224affiliates, revenue and reasonable promotional costs excluding
225officer and director compensation, interest on capital debt,
226legal fees, real estate taxes, bad debts, contributions or
227donations, or overhead and depreciation expenses not directly
228related to the operation of the Internet poker network.
229     (i)  "Nonbanking game" means a game in which the house is
230not a participant in the authorized game.
231     (j)  "Per-hand charge" means a set fee or a percentage of
232the pot, assessed by the Internet poker hub operator for
233providing the Internet poker services, to registered players for
234the right to participate in authorized games conducted on the
235intrastate Internet poker network. This fee may be referred to
236as the "rake."
237     (k)  "Registered player" means a poker player who must be
238physically present within the borders of this state at the time
239of play and who is at least 21 years of age.
240     (l)  "State Internet poker network" means an intrastate
241Internet poker system operated by licensed Internet poker hub
242operators that authorizes the playing of and wagering on
243intrastate Internet poker by registered players through a
244licensed cardroom affiliate's website.
245     (m)  "Tournament fee" means a set fee assessed to
246registered players by the Internet poker hub operator for
247providing the Internet poker tournament services.
248     (3)  INTRASTATE INTERNET POKER AUTHORIZED.-
249     (a)  Under the federal Unlawful Internet Gambling
250Enforcement Act of 2006, a state is authorized to regulate and
251conduct intrastate Internet poker as long as all players and the
252online wagering activities are located within the state.
253     (b)  Notwithstanding any other provision of law, a person
254in the state is authorized to participate as a registered player
255in an authorized game or tournament provided on the state
256Internet poker network by a licensed cardroom affiliate or to
257operate the state Internet poker network as a licensed Internet
258poker hub operator described in this section if such game and
259poker operations are conducted strictly in accordance with the
260provisions of this section and federal law.
261     (4)  AUTHORITY OF DIVISION.-The Division of Pari-mutuel
262Wagering of the Department of Business and Professional
263Regulation shall administer this section and regulate the
264operation of the state Internet poker network, the Internet
265poker hub operator, the cardroom affiliates, and the play of
266intrastate Internet poker under this section and the rules
267adopted pursuant to this section. The division is authorized to:
268     (a)  Adopt rules, including, but not limited to, rules for
269the issuance of operating and individual occupational licenses
270to the Internet poker hub operator, the cardroom affiliate and
271their employees; the operation of the state Internet poker
272network; recordkeeping and reporting requirements; and the
273collection of all fees and taxes imposed by this section.
274     (b)  Conduct investigations and monitor the operation of
275the state Internet poker network and the playing of authorized
276games therein.
277     (c)  Review the books, accounts, and records of any current
278or former Internet poker hub operator cardroom affiliate.
279     (d)  Suspend or revoke any license or permit, after a
280hearing, for any violation of this section or the administrative
281rules adopted pursuant thereto.
282     (e)  Take testimony, issue summons and subpoenas for any
283witness, and issue subpoenas duces tecum in connection with any
284matter within its jurisdiction.
285     (f)  Monitor and ensure the proper collection of taxes and
286fees imposed by this section. Internal controls of the Internet
287poker hub operator are required to ensure no compromise of
288revenue to the state. To that end, a roaming division auditor
289will monitor and verify the cash flow and accounting of the
290Internet poker network revenue for any given operating day.
291     (5)  INTERNET POKER HUB OPERATOR LICENSE REQUIRED;
292APPLICATION; FEES.-No person may operate as an Internet poker
293hub operator in this state unless such person holds a valid
294Internet poker hub operator license issued pursuant to this
295section.
296     (a)  Only those persons holding a valid Internet poker
297license issued by the division may provide intrastate Internet
298poker for play to registered players.
299     (b)  An Internet poker hub operator must be incorporated in
300this state.
301     (c)  Persons seeking a license or a license renewal to
302operate as an Internet poker hub operator shall make the
303application on forms prescribed by the division. Applications
304for cardroom licenses shall contain all of the information the
305division, by rule, may determine is required to ensure
306eligibility.
307     (d)  As a condition of licensure and to maintain continued
308authority for the conduct of intrastate Internet poker, the
309Internet poker hub operator licensee shall be responsible for
310providing appropriate current and accurate documentation on a
311timely basis to the division. Changes in ownership or interest
312of a Internet poker hub operator license of 5 percent or more of
313the stock or other evidence of ownership or equity in the
314Internet poker hub operator license or any parent corporation or
315other business entity that in any way owns or controls the
316Internet poker hub operator license shall be approved by the
317division prior to such change, unless the owner is an existing
318holder of that license who was previously approved by the
319division. Changes in ownership or interest of an Internet poker
320hub operator license of less than 5 percent, unless such change
321results in a cumulative total of 5 percent or more, shall be
322reported to the division within 20 days after the change. The
323division may then conduct an investigation to ensure that the
324license is properly updated to show the change in ownership or
325interest. No reporting is required if the person is holding 5
326percent or less equity or securities of a corporate owner of the
327Internet poker hub operator licensee that has its securities
328registered pursuant to s. 12 of the Securities Exchange Act of
3291934, 15 U.S.C. ss. 78a-78kk, and if such corporation or entity
330files with the United States Securities and Exchange Commission
331the reports required by s. 13 of the Securities Exchange Act of
3321934 or if the securities of the corporation or entity are
333regularly traded on an established securities market in the
334United States. A change in ownership or interest of less than 5
335percent which results in a cumulative ownership or interest of 5
336percent or more shall be approved by the division prior to such
337change unless the owner is an existing holder of the license who
338was previously approved by the division.
339     (e)1.  Upon submission of the initial application for an
340Internet poker hub operator license as prescribed by the
341division, the licensee must pay to the division a nonrefundable
342license fee of $500,000.
343     2.  Annually thereafter, on the anniversary date of the
344issuance of the initial license, an Internet poker hub operator
345shall pay 10 percent of the monthly gross receipts derived from
346the play of intrastate Internet poker during the previous state
347fiscal year to fund the division's regulation and oversight of
348the operation and play of intrastate Internet poker. All funds
349shall be deposited by the division with the Chief Financial
350Officer to the credit of the Pari-mutuel Wagering Trust Fund.
351     (6)  SELECTION OF AN INTERNET POKER HUB OPERATOR BY
352COMPETITIVE PROCUREMENT PROCESS.-The division shall, subject to
353a competitive procurement process, request proposals for
354Internet poker hub operators to provide services for lawful
355intrastate Internet poker games in the state.
356     (7)  QUALIFICATIONS FOR AN INTERNET POKER HUB OPERATOR.-An
357applicant must show when submitting its proposal during the
358competitive procurement process that it meets the following
359requirements:
360     (a)  It has a certificate of incorporation in this state.
361     (b)  It is legally, technically, and financially qualified
362to provide the services to be selected as an Internet poker hub
363operator.
364     (c)  Its executives and key employees meet the requirements
365to obtain intrastate Internet poker occupational licenses from
366the division pursuant to subsection (12).
367     (d)  It is experienced and qualified to receive an Internet
368poker hub operator license from the division.
369     (e)  It is licensed to operate various forms of gaming or
370lottery activities in one or more regulated jurisdictions in
371United States.
372     (f)  It has existing and established experience with
373Internet gaming and is licensed to conduct Internet gaming
374activities in one or more regulated jurisdictions outside the
375United States where such Internet gaming is legal.
376     (8)  SUBMISSION OF THE APPLICATION FOR AN INTERNET POKER
377HUB OPERATOR.-In addition to demonstrating that the applicant is
378legally, technically, and financially qualified to become an
379Internet poker hub operator in the state, the applicant's
380proposal must describe how it will fulfill the partnership role
381envisaged by this section. The applicant must provide all of the
382following:
383     (a)  All necessary documentation and information relating
384to the applicant and its direct and indirect owners, including,
385but not limited to:
386     1.  A certificate of incorporation in this state and other
387founding documents.
388     2.  Current and historical audited financial and
389accounting records.
390     3.  Any and all documents relating to legal and
391regulatory proceedings in this state and other
392jurisdictions.
393     4.  Any and all documents relating to the applicant's
394business history, including all state and federal tax
395filings.
396     5.  All documents relating to the nature and sources of
397the applicant's financing.
398     6.  All documentation that demonstrates that the
399applicant is financially qualified to perform the
400obligations of the Internet poker hub operator as described in
401this section.
402     7.  Any other documentation or information that the
403division, by rule, may determine is required to ensure
404eligibility.
405     (b)  All necessary documentation and information relating
406to all proposed subcontractors of the applicant, including, but
407not limited to:
408     1.  A description of the services to be provided by each
409subcontractor.
410     2.  Information for each subcontractor as set forth in this
411section.
412     3.  Any other documentation or information that the
413division, by rule, may determine is required to ensure
414eligibility.
415     (c)  A description by the applicant of how it will
416facilitate compliance with all of the requirements in this
417section, including, but not limited to:
418     1.  Registered player requirements relating to:
419     a.  Intrastate play.
420     b.  Age verification.
421     c.  Exclusion of problem gamblers.
422     2.  Network system requirements, including, but not
423limited to:
424     a.  Connectivity.
425     b.  Hardware.
426     c.  Software.
427     d.  Anti-fraud systems.
428     e.  Virus prevention.
429     f.  Data protection.
430     g.  Access controls.
431     h.  Firewalls.
432     i.  Disaster recovery.
433     j.  Redundancy.
434     3.  Gaming systems requirements, including, but not
435limited to, hardware and software that ensures:
436     a.  Games are legal.
437     b.  Games are independent and fair.
438     c.  Game and betting rules are available to all registered
439players.
440     d.  All data used for the conduct of each game is randomly-
441generated and unpredictable.
442     4.  Accounting systems requirements, including, but not
443limited to, requirements for:
444     a.  Registered player accounts.
445     b.  Per-hand charges.
446     c.  Transparency and reporting to the division.
447     d.  Distribution of revenue to the state, distribution of
448funds pursuant to contract, and distribution to registered
449players.
450     e.  On-going auditing.
451     (d)  A description of the games and services the applicant
452proposes to offer to registered players.
453     (e)  A description by the applicant of how it will ensure
454that registered players are at least 21 years of age or older
455and facilitate registered player protections and resolution of
456player disputes.
457     (f)  In addition, upon submission of the initial
458application and proposal, the applicant shall pay an initial
459filing fee of $25,000 to compensate the division for reasonably
460anticipated costs to be incurred to conduct a comprehensive
461investigation of the applicant to determine if the applicant is
462legally, technically, and financially qualified to become the
463state's Internet poker hub operator and is suitable for
464licensure. The division may require, by rule, additional funds
465to complete the investigation. The division may set, by rule, a
466procedure for refunding any unused amount of the filing fees.
467     (9)  INTERNET POKER HUB OPERATOR; FINANCIAL RESPONSIBILITY;
468BOND REQUIRED.-The holder of a license to be an Internet poker
469hub operator in the state shall be financially and otherwise
470responsible for the operation of the intrastate Internet poker
471network and for the conduct of any employee involved in the
472operation of the online poker network. Prior to the issuance of
473the Internet poker hub operator license, each applicant for such
474license shall provide evidence of a surety bond in the amount of
475$500,000, payable to the state, for each year that the licensee
476is licensed to be an Internet poker hub operator in the state.
477The bond shall be issued by a surety or sureties authorized to
478do business in the state and approved by the division and the
479state's Chief Financial Officer in his or her capacity as
480treasurer of the division. The bond shall guarantee that an
481Internet poker hub operator fulfills all financial requirements
482of the contract. Such bond shall be kept in full force and
483effect by an Internet poker hub operator during the term of the
484license.
485     (10)  INTERNET POKER HUB OPERATOR; CONTRACT
486RESPONSIBILITIES.-A licensed Internet poker hub operator must
487comply with the terms of its contract with the state and this
488section.
489     (a)  The accepted proposal agreed to by the division, on
490behalf of the state, and an Internet poker hub operator
491applicant shall govern the interpretation of the contract
492creating a partnership entered into between the state and an
493Internet poker hub operator.
494     (b)  The contract may be amended by mutual agreement of the
495division and an Internet poker hub operator.
496     (c)  In the event of amendment of this section, an Internet
497poker hub operator may declare the contract null and void within
49860 days after the effective date of such amendment; otherwise an
499Internet poker hub operator agrees to be bound by any amendments
500to this section adopted after the terms of the contract are
501established.
502     (d)  In the event of commercial infeasibility created by a
503change in federal law rendering the provision of intrastate
504poker services illegal or some other event, an Internet poker
505hub operator may abandon the contract after providing the
506division with a minimum of 30 days' notice of its intent to end
507the contract and a statement explaining its interpretation that
508continuing to provide services under the contract is
509commercially infeasible.
510     (e)  In the event that any dispute arises between the
511parties to the contract, either the division or an Internet
512poker hub operator may go through an administrative law judge or
513circuit court for an initial interpretation of the contract and
514the rights and responsibilities therein.
515     (11)  CARDROOM AFFILIATE LICENSE REQUIRED; APPLICATION;
516FEES.-A cardroom affiliate license may only be issued to a
517cardroom operator who is licensed under s. 849.086 and complies
518with all the requirements of that section and the rules
519promulgated per that section.
520     (a)  Only those persons holding a valid cardroom affiliate
521license issued by the division may provide intrastate Internet
522poker for play to registered players through its website.
523     (b)  After the initial cardroom affiliate license is
524granted, the application for the annual cardroom affiliate
525license renewal shall be made in conjunction with the
526applicant's annual application for its pari-mutuel and cardroom
527licenses under chapter 550 and s. 849.086, respectively.
528     (c)  Persons seeking a license or a renewal thereof to
529operate as a cardroom affiliate shall make the application on
530forms prescribed by the division. Applications for cardroom
531licenses shall contain all of the information the division, by
532rule, may determine is required to ensure eligibility.
533     (d)  As a condition of licensure and to maintain continued
534authority for the conduct of intrastate Internet poker, the
535cardroom affiliate licensee shall be responsible for providing
536appropriate current and accurate documentation on a timely basis
537to the division. Changes in ownership or interest of a cardroom
538affiliate license of 5 percent or more of the stock or other
539evidence of ownership or equity in the cardroom affiliate
540license or any parent corporation or other business entity that
541in any way owns or controls the cardroom affiliate license shall
542be approved by the division prior to such change, unless the
543owner is an existing holder of that license who was previously
544approved by the division. Changes in ownership or interest of a
545cardroom affiliate license of less than 5 percent, unless such
546change results in a cumulative total of 5 percent or more, shall
547be reported to the division within 20 days after the change. The
548division may then conduct an investigation to ensure that the
549license is properly updated to show the change in ownership or
550interest. No reporting is required if the person is holding 5
551percent or less equity or securities of a corporate owner of the
552cardroom affiliate licensee that has its securities registered
553pursuant to s. 12 of the Securities Exchange Act of 1934, 15
554U.S.C. ss. 78a-78kk, and if such corporation or entity files
555with the United States Securities and Exchange Commission the
556reports required by s. 13 of that act or if the securities of
557the corporation or entity are regularly traded on an established
558securities market in the United States. A change in ownership or
559interest of less than 5 percent which results in a cumulative
560ownership or interest of 5 percent or more shall be approved by
561the division prior to such change unless the owner is an
562existing holder of the license who was previously approved by
563the division.
564     (e)  The annual cardroom affiliate license fee shall be
565$1,000. The annual license fee shall be deposited by the
566division with the Chief Financial Officer to the credit of the
567Pari-mutuel Wagering Trust Fund.
568     (12)  BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE REQUIRED;
569APPLICATION; FEES.-
570     (a)  A person employed by or otherwise working for an
571Internet poker hub operator or a cardroom affiliate in any
572capacity related to intrastate Internet poker operations while
573conducting intrastate Internet poker must hold a valid
574occupational license issued by the division.
575     (b)  Any poker management company or poker distributor
576associated with intrastate Internet poker operations must hold a
577valid intrastate Internet poker business occupational license
578issued by the division.
579     (c)  No licensed Internet poker hub operator or a cardroom
580affiliate may employ or allow to be employed in any capacity
581related to the operation of intrastate Internet poker unless
582such person holds a valid occupational license. No licensed
583Internet poker hub operator or cardroom affiliate may contract,
584or otherwise do business with, a business required to hold a
585valid intrastate Internet poker business occupational license,
586unless the business holds such a valid license.
587     (d)  The division shall establish, by rule, a schedule for
588the annual renewal of Internet poker hub operator and cardroom
589affiliate occupational licenses. Intrastate Internet poker
590occupational licenses are not transferable.
591     (e)  Persons seeking intrastate Internet poker occupational
592licenses, or renewal thereof, shall make the application on
593forms prescribed by the division and include payment of the
594appropriate application fee. Applications for intrastate
595Internet poker occupational licenses shall contain all of the
596information the division, by rule, may determine is required to
597ensure eligibility.
598     (f)  The division shall promulgate rules regarding
599intrastate Internet poker occupational licenses.
600     (g)  An intrastate Internet poker license is valid for the
601same term as a pari-mutuel occupational license issued pursuant
602to s. 550.105(1).
603     (h)  Pursuant to rules adopted by the division, any person
604may apply for and, if qualified, be issued an intrastate
605Internet poker occupational license valid for a period of 3
606years upon payment of the full occupational license fee for each
607of the 3 years for which the license is issued. The intrastate
608Internet poker occupational license is valid during its
609specified term at any licensed Internet poker hub operator or a
610cardroom affiliate where intrastate Internet poker is authorized
611to be conducted.
612     (i)  The intrastate Internet poker occupational license fee
613for initial application and annual renewal shall be determined
614by rule of the division but shall not exceed $50 for an
615occupational license for an employee of an Internet poker hub
616operator or a cardroom affiliate licensee or $1,000 for a
617business occupational license for nonemployees of the licensee
618providing goods or services to an Internet poker hub operator or
619a cardroom affiliate occupational licensee. Failure to pay the
620required fee constitutes grounds for disciplinary action by the
621division against an Internet poker hub operator or a cardroom
622affiliate occupational licensee.
623     (13)  BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE DENIAL.-
624     (a)  The division may deny an application for, or revoke,
625suspend, or place conditions or restrictions on, a license of a
626person or entity that has been refused a license by any other
627state gaming commission, governmental department, agency, or
628other authority exercising regulatory jurisdiction over the
629gaming of another state or jurisdiction; or
630     (b)  The division may deny an application for, or suspend
631or place conditions on, a license of any person or entity that
632is under suspension or has unpaid fines in another state or
633jurisdiction.
634     (c)  The division may deny, suspend, revoke, or refuse to
635renew any Internet poker hub operator or cardroom affiliate
636occupational license if the applicant for such license or the
637licensee has violated the provisions of this chapter or the
638rules of the division governing the conduct of persons connected
639with the play of intrastate Internet poker. In addition, the
640division may deny, suspend, revoke, or refuse to renew any
641Internet poker hub operator or a cardroom affiliate occupational
642license if the applicant for such license or the licensee has
643been convicted in this state, in any other state, or under the
644laws of the United States of a capital felony, a felony, or an
645offense in any other state that would be a felony under the laws
646of this state involving arson; trafficking in, conspiracy to
647traffic in, smuggling, importing, conspiracy to smuggle or
648import, or delivery, sale, or distribution of a controlled
649substance; racketeering; or a crime involving a lack of good
650moral character, or has had a gaming license revoked by this
651state or any other jurisdiction for any gaming-related offense.
652     (d)  The division may deny, revoke, or refuse to renew any
653Internet poker hub operator or a cardroom affiliate occupational
654license if the applicant for such license or the licensee has
655been convicted of a felony or misdemeanor in this state, in any
656other state, or under the laws of the United States if such
657felony or misdemeanor is related to gambling or bookmaking as
658described in s. 849.25.
659     (e)  For purposes of this subsection, the term "convicted"
660means having been found guilty, with or without adjudication of
661guilt, as a result of a jury verdict, nonjury trial, or entry of
662a plea of guilty or nolo contendere.
663     (14)  BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE;
664FINGERPRINTS; FEES.-
665     (a)  Fingerprints for all intrastate Internet poker
666occupational license applications shall be taken in a manner
667approved by the division and shall be submitted electronically
668to the Department of Law Enforcement for state processing and
669the Federal Bureau of Investigation for national processing for
670a criminal history records check. All persons employed by or
671working with a licensed Internet poker hub operator or a
672cardroom affiliate shall submit fingerprints for a criminal
673history records check and must not have been convicted of any
674disqualifying criminal offenses. Division employees and law
675enforcement officers assigned by their employing agencies to
676work within the premises as part of their official duties are
677excluded from the criminal history records check requirements
678under this subsection. For purposes of this subsection, the term
679"convicted" means having been found guilty, with or without
680adjudication of guilt, as a result of a jury verdict, nonjury
681trial, or entry of a plea of guilty or nolo contendere.
682     (b)  Fingerprints shall be taken in a manner approved by
683the division upon initial application, or as required thereafter
684by rule of the division, and shall be submitted electronically
685to the Department of Law Enforcement for state processing. The
686Department of Law Enforcement shall forward the fingerprints to
687the Federal Bureau of Investigation for national processing. The
688results of the criminal history records check shall be returned
689to the division for purposes of screening. The division
690requirements under this subsection shall be instituted in
691consultation with the Department of Law Enforcement.
692     (c)  The cost of processing fingerprints and conducting a
693criminal history records check for an intrastate Internet poker
694occupational license shall be borne by the person being checked.
695The Department of Law Enforcement may invoice the division for
696the fingerprints submitted each month.
697     (d)  All fingerprints submitted to the Department of Law
698Enforcement and required by this section shall be retained by
699the Department of Law Enforcement and entered into the statewide
700automated fingerprint identification system as authorized by s.
701943.05(2)(b) and shall be available for all purposes and uses
702authorized for arrest fingerprint cards entered into the
703statewide automated fingerprint identification system pursuant
704to s. 943.051.
705     (e)  The Department of Law Enforcement shall search all
706arrest fingerprints received pursuant to s. 943.051 against the
707fingerprints retained in the statewide automated fingerprint
708identification system under paragraph (c). Any arrest record
709that is identified with the retained fingerprints of a person
710subject to the criminal history screening requirements of this
711section shall be reported to the division. Each licensed
712facility shall pay a fee to the division for the cost of
713retention of the fingerprints and the ongoing searches under
714this paragraph. The division shall forward the payment to the
715Department of Law Enforcement. The amount of the fee to be
716imposed for performing these searches and the procedures for the
717retention of licensee fingerprints shall be as established by
718rule of the Department of Law Enforcement. The division shall
719inform the Department of Law Enforcement of any change in the
720license status of licensees whose fingerprints are retained
721under paragraph (d).
722     (f)  The division shall request the Department of Law
723Enforcement to forward the fingerprints to the Federal Bureau of
724Investigation for a national criminal history records check
725every 3 years following issuance of a license. If the
726fingerprints of a person who is licensed have not been retained
727by the Department of Law Enforcement, the person must file a
728complete set of fingerprints as provided for in paragraph (a).
729The division shall collect the fees for the cost of the national
730criminal history records check under this paragraph and shall
731forward the payment to the Department of Law Enforcement. The
732cost of processing fingerprints and conducting a criminal
733history records check under this paragraph for an intrastate
734Internet poker occupational license shall be borne by the person
735being checked. The Department of Law Enforcement may invoice the
736division for the fingerprints submitted each month. Under
737penalty of perjury, each person who is licensed or who is
738fingerprinted as required by this section must agree to inform
739the division within 48 hours if he or she is convicted of or has
740entered a plea of guilty or nolo contendere to any disqualifying
741offense, regardless of adjudication.
742     (g)  All moneys collected pursuant to this section shall be
743deposited into the Pari-mutuel Wagering Trust Fund.
744     (h)  The division may deny, revoke, or suspend any
745occupational license if the applicant or holder of the license
746accumulates unpaid obligations, defaults in obligations, or
747issues drafts or checks that are dishonored or for which payment
748is refused without reasonable cause.
749     (i)  The division may fine or suspend, revoke, or place
750conditions upon the license of any licensee who provides false
751information under oath regarding an application for a license or
752an investigation by the division.
753     (j)  The division may impose a civil fine of up to $10,000
754for each violation of this section or the rules of the division
755in addition to or in lieu of any other penalty provided for in
756this section. The division may adopt a penalty schedule for
757violations of this section or any rule adopted pursuant to this
758sections for which it would impose a fine in lieu of a
759suspension and adopt rules allowing for the issuance of
760citations, including procedures to address such citations, to
761persons who violate such rules. In addition to any other penalty
762provided by law, the division may exclude from all licensed
763pari-mutuel, cardroom, and slot machine facilities in this
764state, for a period not to exceed the period of suspension,
765revocation, or ineligibility, any person who has been declared
766ineligible to hold an occupational license or whose occupational
767license has been suspended or revoked by the division.
768     (15)  REGISTERED PLAYERS; ELIGIBILITY.-
769     (a)  All registered players must be within this state at
770the time of play of intrastate Internet poker.
771     (b)  A person who has not attained 21 years of age shall
772not be a registered player or play intrastate Internet poker.
773     (c)  The Internet poker hub operator shall exclude from
774play any person who has filled out an Internet Poker Self-
775Exclusion Form.
776     1.  The Internet poker hub operator shall make an Internet
777Poker Self-Exclusion Form available online and accessible on the
778Internet page that is displayed when:
779     a.  A person arrives to register as a registered player; or
780     b.  A registered player accesses the first page of the
781Internet poker hub website prior to playing.
782     2.  Upon receipt of a completed Internet Poker Self-
783Exclusion Form, the Internet poker hub operator shall
784immediately provide a copy of the completed form to the cardroom
785affiliates and the division.
786     3.  The Internet poker hub operator shall retain the
787original form to identify persons who request to be excluded
788from play.
789     4.  The Internet poker hub operator shall prominently
790display a link to the website of a responsible gaming
791organization that is under contract with the division per s.
792551.118(2) for services related to the prevention of compulsive
793and addictive gambling.
794     5.  The Internet poker hub operator shall not be held
795liable in any way should a person who has filled out an Internet
796Poker Self-Exclusion Form gain access and play despite the
797request to be excluded.
798     (16)  INTRASTATE INTERNET POKER; AUTHORIZED GAMES.-
799     (a)  In order to propose a game of poker for play, the
800Internet poker hub operator shall provide the division with:
801     1.  A description of any game of poker and the betting
802rules it proposes to offer to registered players;
803     2.  A legal opinion explaining how the game complies with
804federal and state laws; and
805     3.  Documentation relating to development and testing of
806the game's software.
807     (b)  If the division does not object to the proposed games
808of poker within 30 days after receipt of the proposal, the
809Internet poker hub operator may offer the game to registered
810players.
811     (c)  Games and betting events must be operated strictly in
812accordance with the specified game and betting rules.
813     (d)  The Internet poker hub operator must ensure that the
814authorized games of poker are fair. For each authorized game
815offered for play, the gaming system must display the following
816information:
817     1.  The name of the game.
818     2.  Any restrictions on play.
819     3.  The rules of the game.
820     4.  All instructions on how to play.
821     5.  The unit and total bets permitted.
822     6.  The registered player's current account balance
823which shall be updated in real time.
824     7.  Any other information that the Internet poker hub
825operator determines is necessary for the registered player
826to have in real time to compete fairly in the game.
827     (e)  All authorized game results must be conducted in such a
828fashion that:
829     1.  Data used to create results must be unpredictable such
830that it is infeasible to predict the next occurrence in a game,
831given complete knowledge of the algorithm or hardware generating
832the sequence, and all previously generated numbers.
833     2.  The game or any game event outcome must not be affected
834by the effective bandwidth, link utilization, bit error rate or
835other characteristic of the communications channel between the
836gaming system and the playing device used by the player.
837     (f)  The Internet poker hub operator must deploy controls
838and technology to ensure the ability to minimize fraud or
839cheating through collusion, such as external exchange of
840information between different players, or any other means.
841     1.  If the Internet poker hub operator becomes aware that
842fraud or cheating is taking place or has taken place, it shall
843take steps to stop such activities immediately and will
844immediately inform the division of all relevant facts.
845     2.  No registered player may bring an action for damages
846against the Internet poker hub operator to prevent fraud or
847cheating if the Internet poker hub operator can demonstrate
848that it acted to prevent such actions as soon as the Internet
849poker hub operator became aware of them.
850     (g)  In the event that the gaming server or software does
851not allow a game to be completed, the hand shall be voided and all
852funds relating to the incomplete hand shall be returned to the
853registered player's account.
854     (17)  REGISTERED PLAYER ACCOUNTS.-
855     (a)  The Internet poker hub operator must register players
856and establish player accounts prior to play and must ensure that
857personally identifiable information is accessible to players and
858regulators but is otherwise secure.
859     (b)  A person shall not participate in any game on the
860intrastate Internet poker network unless the person is
861registered as a player and holds an account.
862     (c)  Accounts may be established in person, by mail or
863telephone, or by any electronic means.
864     (d)  To register and establish an account, a person must
865provide the following registration information:
866     1.  First name and surname.
867     2.  Principal residence address.
868     3.  Telephone number.
869     4.  Social Security number.
870     5.  Legal identification or certification to prove that
871person is at least 21 years of age.
872     6.  Valid email address.
873     7.  The source of funds to be used to establish the
874account once the registration process is complete.
875     (e)  A person may only register one account.
876     (f)  Prior to completing the registration process, the
877Internet poker hub operator must explain to the person in a
878conspicuous fashion the privacy policies of the Internet poker
879hub, and a person must assent to the following policies:
880     1.  No personally-identifiable information shall be shared
881with any nongovernment third-parties except for licensed
882subcontractors of the Internet Poker hub operator for the sole
883purpose of permitting registered players to participate in
884games on the Internet poker hub or upon receipt of a court
885order to subpoena such information from the Internet poker hub;
886and
887     2.  All personally-identifiable information about
888registered players will be shared with the division, the
889Department of Law Enforcement, and any other governmental agency
890who receives a court order to subpoena such information.
891     (g)  The Internet poker hub operator may also require that
892a person agree to a terms of use agreement applying to
893registered players.
894     (h)  The Internet poker hub operator shall provide a
895registered player with the means to update the
896information provided in paragraph (c).
897     (i)  The Internet poker hub operator may revoke the
898account of a registered play for the following reasons:
899     1.  The person provided false information in the
900registration process;
901     2.  The registered player has not updated registration
902information to keep it current;
903     3.  The registered player has violated the Internet poker
904hub's terms of use agreement; or
905     4.  The person has already been registered.
906     (j)  The Internet poker hub operator may suspend or revoke
907the account of a registered player if the operator suspects the
908registered player has participated in illegal activity on the
909Internet poker hub.
910     (k)  The Internet poker hub operator shall establish and
911maintain an account for each registered player. The Internet
912poker hub operator shall:
913     1.  Provide a means for a registered player to put funds
914into an account; however a registered player shall not increase
915the amount in an account after a game has started and before its
916completion.
917     2.  Maintain records on the balance of each registered
918player's account.
919     3.  Shall not permit a registered player to place a wager
920unless the player's account has sufficient funds to cover the
921amount of the wager.
922     4.  Shall not provide credit to a registered player's
923account or act as agent for a credit provider to facilitate the
924provision of funds.
925     5.  Shall provide a means for a registered player to
926transfer money out of his or her account.
927     (l)  The Internet poker hub operator must put in place
928other systems that provide registered players with the ability
929to control aspects of their play. Upon registration and at each
930time when a registered player logs on to the Internet poker hub,
931the Internet poker hub operator shall permit registered players
932to adjust their play settings to:
933     1.  Set a limit on the deposits that can be made per day.
934     2.  Set a limit on the amount that can be wagered within a
935specified period of time.
936     3.  Set a limit on the losses that may incur within a
937specified period of time.
938     4.  Set a limit on the amount of time that can be played
939after logging on to the Internet poker hub.
940     5.  Prevent the Internet poker hub from allowing the
941registered player to play for a definite or indefinite period of
942time.
943     (m)  During play, in order to assist a registered player to
944decide whether to suspend play, the registered player's
945screen shall indicate the following:
946     1.  How long the player has been playing.
947     2.  The player's winnings or losses since the time of
948last logging on.
949     3.  Give an option to the player to end the session or return
950to the game.
951     4.  Require the player to confirm that they have read the
952message.
953     (18)  REGISTERED PLAYER ACCOUNTS; RECORDS AND REPORTS.-
954     (a)  The Internet poker hub operator must establish a book
955of accounts, regularly audit all financial records, and make the
956records available to the division. The Internet poker hub
957operator must demonstrate that it has a system of maintaining
958records and reports that are readily available to the division.
959The records and reports must include the following:
960     1.  Monthly auditable and aggregate financial statements of
961gaming transactions.
962     2.  Calculation of all fees payable to government.
963     3.  The identity of players.
964     4.  The balance on the player's account at the start of a
965session of play.
966     5.  The wagers placed on each game which are time stamped by
967the games server.
968     6.  The result of each game which are time stamped by the
969games server.
970     7.  The amount won or lost by the player.
971     8.  The balance on the player's account at the end of the
972game.
973     (b)  The Internet poker hub operator shall reconcile all
974data logs files regarding the registered players' accounts on a
975monthly basis.
976     (19)  INTERNET POKER HUB OPERATORS; TECHNICAL SYSTEMS
977REQUIREMENTS.-
978     (a)  The Internet poker hub operator must put in place
979technical systems that materially aid the division in fulfilling
980its regulatory, consumer protection, and revenue raising
981functions and allow the division unrestricted access to and the
982right to inspect the technical systems.
983     (b)  The Internet poker hub operator must ensure that the
984network is protected from manipulation or tampering to affect
985the random probabilities of winning plays.
986     (c)  The Internet poker hub operator must define and
987document its methodology for:
988     1.  The development, implementation, and maintenance of
989gaming software in a manner representative of industry best
990practice standards.
991     2.  Server connectivity requirements for:
992     a.  Minimum game server connectivity that ensures players
993are protected from losses due to connectivity problems.
994     b.  The system's ability to recover all transactions
995involving player funds in the event of a failure or malfunction.
996     c.  Aborted game procedures.
997     3.  All information required for viewing a game interrupted
998due to loss of connectivity shall be recoverable by the system.
999     4.  Consumer protection requirements.
1000     5.  Responsible advertising, marketing, and promotion
1001that ensure that players are not mislead through advertising or
1002promotional activities, and will ensure that the terms and
1003conditions of their promotions are followed.
1004     6.  Anti-money laundering controls.
1005     7.  Preventative and detective controls addressing money
1006laundering and fraud risks.
1007
1008The methodologies under this paragraph shall be documented and
1009implemented.
1010     (d)  The Internet poker hub operator shall retain all such
1011documentation for a minimum of 12 months.
1012     (20)  FEE FOR PARTICIPATION.-An Internet poker hub operator
1013shall charge a per hand fee or a tournament fee to registered
1014players for the right to participate in authorized games or
1015tournaments conducted on the intrastate Internet poker network.
1016Such fee may be either a flat fee, hourly rate, or a rake
1017subject to the posted maximum amount but must not be based on
1018the amount won by players. The fee must be designated and
1019conspicuously posted on the network prior to the start of each
1020authorized game.
1021     (21)  PROHIBITED RELATIONSHIPS.-
1022     (a)  A person employed by or performing any function on
1023behalf of the division shall not:
1024     1.  Be an officer, director, owner, or employee of any
1025person or entity licensed by the division; or
1026     2.  Have or hold any interest, direct or indirect, in or
1027engage in any commerce or business relationship with any person
1028licensed by the division.
1029     (b)  An employee of the division or relative living in the
1030same household as such employee of the division shall not play
1031at any time on the intrastate Internet poker network.
1032     (c)  An occupational licensee or relative living in the
1033same household as such occupational licensee shall not play at
1034any time on the intrastate Internet poker network.
1035     (22)  PROHIBITED ACTS; PENALTIES.-
1036     (a)  No person licensed as an Internet poker hub operator
1037or cardroom affiliate may conduct any game not specifically
1038authorized by this section.
1039     (b)  No person under 21 years of age may be permitted to
1040hold an intrastate Internet poker occupational license, or
1041engage in any game conducted therein.
1042     (c)  Except as otherwise provided by law and in addition to
1043any other penalty, any person who knowingly makes or causes to
1044be made, or aids, assists, or procures another to make, a false
1045statement in any report, disclosure, application, or any other
1046document required under this section or any rule adopted under
1047this section is subject to an administrative fine of up to
1048$10,000.
1049     (d)  All penalties imposed and collected under this section
1050must be deposited into the Pari-mutuel Wagering Trust Fund of
1051the Department of Business and Professional Regulation.
1052     (23)  LICENSE FEES; TAXES; PENALTIES.-
1053     (a)  LICENSE FEE.-
1054     1.  Upon submission of the initial application for an
1055Internet poker hub operator license, as prescribed by the
1056division, the licensee must pay to the division a nonrefundable
1057license fee of $500,000.
1058     2.  Annually thereafter, on the anniversary date of the
1059issuance of the initial license, an Internet poker hub operator
1060shall pay 10 percent of the monthly gross receipts derived from
1061the play of intrastate Internet poker during previous state
1062fiscal year.
1063     3.  Upon submission of the initial application for a
1064cardroom affiliate license and annually thereafter, as
1065prescribed by the division, the licensee must pay to the
1066division a nonrefundable license fee of $1,000 for the
1067succeeding 12 months of licensure.
1068     4.  The license fees shall be deposited into the Pari-
1069mutuel Wagering Trust Fund of the Department of Business and
1070Professional Regulation to be used by the division for
1071regulation, investigations, and enforcement of intrastate
1072Internet poker provisions under this chapter. These payments
1073shall be accounted for separately from taxes or fees paid
1074pursuant to the provisions of chapter 550, chapter 551 and s.
1075849.086.
1076     (b)  Each Internet poker hub operator shall pay a tax to
1077the state of 20 percent of the monthly gross receipts derived
1078from the play of intrastate Internet poker.
1079     (c)  Payment of the gross receipts tax imposed by this
1080section shall be paid to the division. All Internet poker hub
1081operators and cardroom affiliates shall remit the gross receipts
1082tax and licensee fees to the division to be deposited with the
1083Chief Financial Officer, to the credit of the Pari-mutuel
1084Wagering Trust Fund of the Department of Business and
1085Professional Regulation. Such payments shall be remitted to the
1086division by electronic funds transfer on the 5th day of each
1087calendar month for taxes and fees imposed for the preceding
1088month's intrastate Internet poker activities. Licensees shall
1089file a report under oath by the 5th day of each calendar month
1090for all taxes remitted during the preceding calendar month. Such
1091payments shall be accompanied by a report under oath showing all
1092intrastate Internet poker activities for the preceding calendar
1093month, and containing such other information as may be
1094prescribed by the division.
1095     (d)  Each cardroom affiliate shall use at least 4 percent
1096of its monthly gross receipts from the play of intrastate
1097Internet poker to supplement pari-mutuel purses and prize money.
1098The disposition of the intrastate Internet poker supplement may
1099be decided by the contractual arrangement between the cardroom
1100affiliate and the associations representing the respective horse
1101racing breeders and owners, greyhound racing breeders and
1102owners, or jai alai players, but it must be paid during the
1103pari-mutuel permitholder's next ensuing meet.
1104     (e)  A licensee who fails to make tax payments as required
1105under this section is subject to an administrative penalty of up
1106to $10,000 for each day the tax payment is not remitted. All
1107penalties imposed and collected shall be deposited in the Pari-
1108mutuel Wagering Trust Fund. If a licensee fails to pay penalties
1109imposed by order of the division under this subsection, the
1110division may suspend, revoke, or refuse to renew the license of
1111an Internet poker hub operator or cardroom affiliate.
1112     (f)  All of the moneys deposited in the Pari-mutuel
1113Wagering Trust Fund, except as set forth in paragraph (h), shall
1114be utilized and distributed in the manner specified in s.
1115550.135(1) and (2).
1116     (24)  SUSPENSION, REVOCATION, OR DENIAL OF LICENSE; FINE.-
1117     (a)  The division may deny a license or the renewal
1118thereof, or may suspend or revoke any license:
1119     1.  When the applicant or licensee has violated or failed
1120to comply with the provisions of this section or any rules
1121adopted pursuant to this section.
1122     2.  When the applicant or licensee has knowingly caused,
1123aided, abetted, or conspired with another to cause any person to
1124violate this section or any rules adopted pursuant to this
1125section.
1126     3.  When the applicant or licensee has obtained a license
1127or permit by fraud, misrepresentation, or concealment.
1128     4.  When the licensee is no longer eligible under this
1129section.
1130     (b)  If a cardroom affiliate's pari-mutuel permit or
1131license is suspended or revoked by the division pursuant to
1132chapter 550, or its cardroom operator's license is suspended or
1133revoked by the division pursuant to s. 849.086, the division
1134may, but is not required to, suspend or revoke such cardroom
1135affiliate's license. If a cardroom affiliate's license is
1136suspended or revoked pursuant to this section, the division may,
1137but is not required to, suspend or revoke such licensee's
1138cardroom operator's license.
1139     (c)  Notwithstanding any other provision of this section,
1140the division may impose an administrative fine, not to exceed
1141$10,000 for each violation, on any person who has violated or
1142failed to comply with this section or any rules adopted pursuant
1143thereto.
1144     (25)  PENALTIES.-The division may revoke or suspend any
1145Internet poker hub operator or cardroom affiliate license issued
1146under this section upon the willful violation by the Internet
1147poker hub operator licensee or the cardroom affiliate of any
1148provision of this section or of any rule adopted under this
1149section. In lieu of suspending or revoking an Internet poker hub
1150operator license or a cardroom affiliate license, the division
1151may impose an administrative fine that shall not exceed $100,000
1152for each count or separate offense against the Internet poker
1153hub operator or cardroom affiliate for a violation of this
1154section or any rule adopted by the division. All penalties
1155imposed and collected must be deposited into the Pari-mutuel
1156Wagering Trust Fund of the Department of Business and
1157Professional Regulation.
1158     (26)  RULEMAKING.-The division may adopt rules pursuant to
1159ss. 120.536(1) and 120.54 to administer the provisions of this
1160chapter.
1161     (27)  LEGISLATIVE AUTHORITY; ADMINISTRATION OF SECTION.-The
1162Legislature finds and declares that it has exclusive authority
1163over the conduct of intrastate Internet poker in this state. As
1164provided by law, only the Division of Pari-mutuel Wagering and
1165other authorized state agencies shall administer this section
1166and regulate the intrastate Internet poker industry in the
1167state, including operation of Internet poker hub operators and
1168cardroom affiliates, the play of authorized games, and the
1169Internet poker computer systems authorized in this section and
1170the rules adopted by the division.
1171     Section 3.  This act shall take effect July 1, 2010.


CODING: Words stricken are deletions; words underlined are additions.