D.C. Code § 36-601.01

Current through codified legislation effective April 10, 2024

Section 36-601.01 - Creation [of the District of Columbia Lottery and Gaming Control Board]; established as an office within the Office of the Chief Financial Officer; transfer of powers; definitions

(a) There is hereby created by the District of Columbia, the District of Columbia Lottery and Gaming Control Board.

(b) Effective with the appointment of the first Chief Financial Officer under § 1-204.24 b and pursuant to § 1-204.24 a(c), the Board is established as the Office of Lottery and Gaming, a subordinate office within the Office of the Chief Financial Officer. All of the powers, duties, functions, and personnel of the Board are transferred to the Office of the Chief Financial Officer.

(c) For the purposes of this chapter and subchapter I of Chapter 17 of Title 22, the term:

(1) "Board" means the District of Columbia Lottery and Gaming Control Board established by this section.

(2) "CBE act" means subchapter IX-A of Chapter 2 of Title 2.

(3) "CBE plan" means the plan required by applicants for sports wagering licenses pursuant to § 36-621.05(g).

(4) "Certified business enterprise" or "CBE" shall have the same meaning as provided in § 2-218.02(1D).

(5) "Commercially useful function" shall have the same meaning as provided in § 2-218.02(1G).

(6) "CFO" means the Chief Financial Officer of the District of Columbia.

(7) "Disadvantaged business enterprise" or "DBE" shall have the same meaning as provided in § 2-218.02(5).

(8) "DSLBD" means the Department of Small and Local Business Development.

(9) "Gross sports wagering revenue" means the total of cash or cash equivalents received from sports wagering minus the total of:

(A) Cash or cash equivalents paid to players as a result of sports wagering;

(B) Cash or cash equivalents paid to purchase annuities to fund prizes payable to players over a period of time as a result of sports wagering;

(C) The actual cost paid by the license holder for any personal property distributed to a player as a result of sports wagering, excluding travel expenses, food, refreshments, lodging, and services.

(10) "Joint venture" shall have the same meaning as provided in § 2-218.02(11).

(11) "Majority interest" means:

(A) More than 50% of the total combined voting power of all classes of stock of the joint venture business enterprise or more than 50% of the total value of the joint venture business enterprise;

(B) A financial contribution to the enterprise of more than 50%; or

(C) More than 50% of the total interest in the capital, profits, and loss, or beneficial interest in the joint venture business enterprise.

(12) "Office" means the Office of Lottery and Gaming established by this section.

(13) "Operator" means an individual, group of individuals, or entity that holds a sports wagering operator license issued by the District.

(14) "Resident-owned business" or "ROB" shall have the same meaning as provided in § 2-218.02(15).

(15) "Small Business Enterprise" or "SBE" shall have the same meaning as provided in § 2-218.02(16).

(16) "Sports governing body" means the governing body for a sports league that is registered with the Office, including, if registered, Major League Baseball, Major League Soccer, National Basketball Association, National Football League, National Hockey League, and the Women's National Basketball Association.

(17) "Sports wagering" means accepting wagers on sporting events, or a portion of a sporting event, or on the individual performance statistics of an athlete in a sporting event or combination of sporting events, including single- game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, straight bets, or other means by a system or method of wagering, including in-person or over the internet through websites or on mobile devices. The term "sports wagering" does not include any fantasy or simulated game or contest such as fantasy sports in which:

(A) Participants own, manage, or coach imaginary teams;

(B) All prizes and awards offered to winning participants are established and made known to participants in advance of the game or contest;

(C) The winning outcome of the game or contest reflects the relative skill of the participants and is determined by statistics generated by actual individuals, including athletes in the case of a sporting event; and

(D) No winning outcome is based solely on the performance of an individual athlete or on the score, point spread, or any performance of any single real-world team or any combination of real-world teams.

(18) "Sports wagering equipment" means a mechanical, electronic, or other device, mechanism, or other gaming equipment, and related supplies used or consumed in the operation of sports wagering at a licensed sports wagering facility, including a self-service terminal installed to accept sports wagers.

(19) "Sports wagering facility" means a gaming premises approved under a sports wagering license on which an operator may offer sports wagering and which may be a building or set of buildings or a subsection or subdivision of a single building, room, or set of rooms within a building.

(20) "Operator license" means a sports wagering operator license issued by the Office that authorizes the operation of sports wagering, including sports wagering conducted over the internet or through mobile applications or other digital platforms that is initiated and received, or otherwise made, exclusively within the physical confines of the single approved sports wagering facility.

(21) "Wager" means the betting, staking, or risking by an individual, group of individuals, or entity of something of value upon an agreement or understanding that the individual, group of individuals, or entity or another individual, group of individuals, or entity will receive something of value in the event of a certain outcome. The term "wager" does not include:

(A) An activity governed by the securities laws of the United States or the District of Columbia;

(B) A contract of indemnity or guarantee;

(C) A contract for insurance; or

(D) Participation in a game or contest in which the participants do not stake or risk anything of value other than personal effort in playing the game or contest or obtaining access to the internet, points, or credits that the sponsor of the game or contest provides to participants free of charge and that can be used or redeemed only for participation in games or contests offered by the sponsor.

D.C. Code § 36-601.01

Mar. 10, 1981, D.C. Law 3-172, § 4, 27 DCR 4736; Oct. 8, 2016, D.C. Law 21-160, § 7072(a), 63 DCR 10775; May 3, 2019, D.C. Law 22-312, § 2, 66 DCR 1402.

Restriction on advertising, sale, operation, or playing of lotteries, raffles, bingos, etc., on Federal enclave: See Pub. L. 97-91, 103 Stat. 1174, December 4, 1981, as amended by Pub. L. 101-168, 103 Stat. 1282, November 21, 1989.

Sources of funding appropriation: Public Law 103-127, 107 Stat. 1343, the District of Columbia Appropriations Act, 1994, provided that the District of Columbia shall identify the sources of funding for this appropriation title from the District's own locally-generated revenues, and provided further, that no revenues from Federal sources shall be used to support the operations or activities of the Lottery and Charitable Games Control Board.

Restrictions on use of Federal payment: Section 134 of Pub. L. 101-168, the District of Columbia Appropriations Act, 1990, provided that the paragraph under the heading "Lottery and Charitable Games Enterprise Fund" in the District of Columbia Appropriation Act, 1982, approved December 4, 1981 (95 Stat. 1174; Public Law 97-91 ), is amended by striking the 10th proviso; and in the 11th proviso, by striking "1144, as well as in the Old Georgetown Historic District:" and inserting "1144:"; and the 11th proviso referred to in subsection (a)(2), as amended by such subsection, shall not apply with respect to any activity relating to a lottery, raffle, bingo, or other game of chance sponsored by, and conducted solely for the benefit of, an organization which is described in section 501(c)(3), and exempt from tax under section 501(a), of the Internal Revenue Code of 1986.

Appropriations authorized: Public Law 103-334, 108 Stat. 2582, the District of Columbia Appropriations Act, 1995, provided for the Lottery and Charitable Games Enterprise Fund, established by the District of Columbia Appropriations Act for the fiscal year ending September 30, 1982, approved December 4, 1981 (95 Stat. 1174; Public Law 97-91 ), as amended, for the purpose of implementing § 2-2501 et seq. and 22-1516 et seq., $8,318,000, to be derived from non-Federal District of Columbia revenues. Provided, That the District of Columbia shall identify the source of funding for this appropriation title from the District's own locally-generated revenues: Provided further, That no revenues from Federal sources shall be used to support the operations or activities of the Lottery and Charitable Games Control Board.

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Applicability

Applicability of D.C. Law 22-312: § 7177 of D.C. Law 23-16 amended § 5(a) of D.C. Law 22-312 to repeal the delayed applicability affecting this section. Therefore the amendment of this section by D.C. Law 22-312 has been implemented.

Applicability of D.C. Law 22-312: § 5 of D.C. Law 22-312 provided that the change made to this section by § 2(d)(1) of D.C. Law 22-312 is subject to the inclusion of the law's fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

Nomination and approval of agency heads, see § 1-523.01. .