§ 36–621.11. District-operated sports wagering; sports waging retailers.

(a)(1) The District of Columbia, through the Office, may conduct sports wagering authorized by this subchapter through any method of wagering, including mobile and online transactions; provided, that any systems used for mobile or online transactions include age and location verification technology designed to prevent unauthorized access by individuals whose age and current location have not been verified. The Office may engage a contractor or contractors to provide the systems and related services for accepting sports wagers.

(2) The Office may offer a mobile or on-line sports wagering product, either by taxing mobile and on-line licensed retailers at a rate of 30%, without limit to the number of licenses issued, or through contract with a limited number of partners operating an Office of Lottery and Gaming mobile and web-based sports wagering operation, whichever can be shown to return the most revenue to the District.

(3) Repealed.

(b)(1) The Office shall license sports wagering retailers. Businesses that apply to be licensed as sports wagering retailers shall also be licensed as lottery and daily numbers game agents ("lottery licensees").

(2) Active lottery licensees, as well as new applicants, shall be required to apply to the Office for a separate sports wagering retailer license.

(3) In determining whether to approve an application for a sports wagering retailer ("retailer") license, the Office shall consider the:

(A) Financial responsibility of the business or operation;

(B) Accessibility of the place of business or operation to the public;

(D) Volume of expected District-operated sports wagering sales.

(c)(1) An applicant for a retailer license, which shall have a term of 2 years, shall meet all requirements for licensure and pay an application fee of $5,000.

(2) A retailer license may be renewed for 2-year periods; provided, that the licensee has continued to comply with all statutory and regulatory requirements and pays upon submission of a renewal application a $5,000 renewal fee.

(d) The Office shall require a retailer licensee to be bonded, in such amounts and in such manner as determined by the Office, and agree, in writing, to indemnify and save harmless the District of Columbia against any and all actions, claims, and demands of whatever kind or nature that the District of Columbia may incur by reason of or in consequence of issuing the retailer license to the licensee.

(e) Subject to fiscal limitations and requirements of law, the Office may authorize compensation for a retailer licensee in the manner and amounts the Office determines necessary and appropriate.

(f)(1) No sports wager shall be accepted under this section by other than a retailer licensee or an employee of the retailer licensee.

(2) An individual, group of individuals, or entity convicted of violating this subsection shall be subject to a fine not to exceed $5,000 or imprisonment not to exceed 6 months, or revocation of the retailer license, or all of the foregoing.

(3) Twenty-four months after May 3, 2019, the Office of the District of Columbia Auditor shall prepare a study evaluating the performance of the sports wagering instituted by this subchapterto determine the level of District revenue generated by mobile and online gaming compared to other similarly situated jurisdictions and submit the completed study to the Mayor and Council.

(g)(1) The Office shall provide sports wagering kiosks to sports wagering retailers through:

(A) The contract #CFOPD-19-C-041 with Intralot Inc. ("Contract"), and any subsequent modifications or extensions of the Contract; or

(B) By requiring one or more licensees licensed pursuant to § 36-621.06(b)(1) or (c-1) to provide kiosks, as a condition of its license, under the same terms as the Contract, and any subsequent modifications or extensions of the Contract.

(2) If a contractor or licensee removes or refuses to provide a sports wagering kiosk to a sports wagering retailer as required by the Office pursuant to paragraph (1) of this subsection, or a sports wagering retailer notifies the Office in writing that a kiosk is not functioning, the Office shall require a licensee that is subject to paragraph (1)(B) of this subsection to replace the kiosk within 15 calendar days with a functioning sports wagering kiosk.

(3) A licensee who fails to provide a sports wagering kiosk to a sports wagering retailer, as required by the Office pursuant to paragraph (1)(B) of this subsection, shall be liable for a daily penalty of $1,000.

(4) Following the expiration of the Contract, the Office shall continue the sports wagering retailer program under terms prescribed through rulemaking or statute.