Nebraska LB 990: Adopt the Games of Skill Act and use proceeds to reduce school district property tax levies

Bill Text

LEGISLATURE OF NEBRASKA
ONE HUNDRED SIXTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 990

Introduced by Wayne, 13.
Read first time January 14, 2020
Committee: General Affairs
A BILL FOR AN ACT relating to gambling; to amend sections 28-1101,1
28-1105, and 28-1113, Reissue Revised Statutes of Nebraska, section2
79-1001, Revised Statutes Cumulative Supplement, 2018, and sections3
9-1,101 and 77-3442, Revised Statutes Supplement, 2019; to adopt the4
Games of Skill Act; to redefine duties for the Department of5
Revenue; to provide a gambling exception for operating or6
participating in games of skill; to change a provision relating to7
the possession of gambling records; to change provisions relating to8
property tax levies; to change the Tax Equity and Educational9
Opportunities Support Act; to harmonize provisions; to provide an10
operative date; and to repeal the original sections.11
Be it enacted by the people of the State of Nebraska,12
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Section 1. Sections 1 to 9 of this act shall be known and may be1
cited as the Games of Skill Act.2
Sec. 2. (1) The Legislature finds that:3
(a) Sports betting and fantasy sports require knowledge and skill.4
Knowledge of a sport and skill in analyzing and predicting the5
performance of athletes and the outcomes of sporting events is essential6
for a participant in sports betting or fantasy sports to be successful;7
and8
(b) Certain poker games also require knowledge and skill. While9
poker does have a random component in the cards that are dealt to10
participants, there is more skill than chance necessary for successful11
participation in a game where strategic decisions influence the other12
participants and ultimately the outcome of the game.13
(2) It is the intent of the Legislature to recognize sports betting,14
fantasy sports, and various forms of poker as games of skill.15
Sec. 3. For purposes of the Games of Skill Act:16
(1) Athlete means a person who competes in a sport or sporting17
event;18
(2) Confidential information means information related to19
participation in a game of skill obtained by an operator or by an20
employee of such operator;21
(3) Department means the Charitable Gaming Division of the22
Department of Revenue;23
(4) Entry fee means cash or a cash equivalent required to be paid by24
a participant in a game of skill to an operator in order to participate25
in such game of skill;26
(5) Fantasy sport means a game in which participants assemble27
imaginary or virtual teams of real athletes who play a sport, such teams28
compete based on the statistical performance of such athletes in actual29
sporting events, and such teams are not based on the current membership30
of an actual team that is a member of an amateur or professional sports31
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organization as defined in 28 U.S.C. 3701, as such section existed on1
January 1, 2020. Each fantasy sport shall meet the following conditions:2
(a) All prizes offered to winning participants are established and3
made known to the participants in advance of the game and the value of4
any prize is not determined by the number of participants or the amount5
of entry fees paid by such participants;6
(b) All winning outcomes reflect the relative knowledge and skill of7
the participants and are determined predominantly by accumulated8
statistical results of the performance of individual athletes in multiple9
real-world sporting events; and10
(c) No winning outcome is based on (i) the score, point-spread, or11
performance or performances of any single real-world team or combination12
of teams or (ii) any single performance of an individual athlete in any13
single real-world sporting event;14
(6) Game of skill means a fantasy sport, sports betting, or poker;15
(7) Gross revenue means the total entry fees that an operator16
collects from participants less the total of sums paid out as prizes to17
participants with such difference multiplied by the location percentage;18
(8) Location percentage means, for each game of skill, the19
percentage rounded to the nearest tenth of a percent of the total entry20
fees collected from participants located in Nebraska at the time of entry21
into the game of skill divided by the total entry fees collected from22
participants in all locations for such game of skill;23
(9) Operator means a person that offers an opportunity for24
participants to engage in a game of skill, collects an entry fee from25
each participant, administers such game of skill, and awards prizes;26
(10) Participant means a person who pays an entry fee to engage in a27
game of skill offered by an operator;28
(11) Poker means a draw or community card game in which a29
participant bets that the value of his or her hand is greater than the30
value of the hands held by other participants in such game, and each31
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subsequent participant in such game must either equal or raise the bet or1
drop out. Poker includes draw poker, such as five-card draw i