19720.

 This chapter shall be known, and may be cited, as the California Interactive Sports Wagering Consumer Protection Act.

19721.

 (a) Subject to a state constitutional amendment that has been approved by the voters and a change in federal law, the following entities may be licensed by the department to accept and facilitate wagering on sports events as authorized pursuant to this chapter:

(1) A card room that operates pursuant to Chapter 5 (commencing with Section 19800) whose owner or owners have been authorized, subject to oversight by, and are in good standing with, the applicable state regulatory authorities.

(2) A racing association or racing fair, with a current license issued by the California Horse Racing Board pursuant to Chapter 4 (commencing with Section 19400). A licensed racing association or licensed racing fair may conduct sports wagering only if it has an agreement in place with the organization recognized by the board that is responsible for negotiating purse agreements, satellite wagering agreements, and all other business agreements on behalf of horsemen and horsewomen participating in a racing meeting.

(3) A federally recognized California Indian tribe that operates a gaming facility pursuant to a facility license issued in accordance with a tribal gaming ordinance approved by the Chair of the National Indian Gaming Commission.

(b) The entities listed in subdivision (a) that are eligible for licensure pursuant to this chapter may form a partnership, joint venture, or any other affiliation in order to further the purposes of this chapter.

19722.

 As used in this chapter, the following definitions shall apply:

(a) “Board” means the California Horse Racing Board.

(b) “Card room” means a gambling enterprise, as defined in subdivision (m) of Section 19805.

(c) “Department” means the Department of Justice.

(d) “Licensed operator” means any of the entities listed in subdivision (a) of Section 19721 that are authorized pursuant to this chapter to conduct sports wagering.

(e) “Prohibited sports event” means any collegiate sport or athletic event that takes place in California, or a sports event in which any California college team participates, regardless of where the event takes place.

(f) “Sports event” shall include any professional sports or athletic event, and any collegiate sports or athletic event, except a prohibited sports event.

(g) “Sports wagering” means the business of accepting wagers on a sports event by any legal system or method of wagering, including, but not limited to, exchange wagering, parlays, over-under, moneyline, and straight bets.

(h) “Internet” means the international computer network of both federal and nonfederal interoperable packet-switched data networks.

(i) “Licensed service provider” means a person who is licensed pursuant to this chapter to provide goods or services to a licensed operator for use in the operation of an authorized sports wagering Internet Web site.

19723.

 (a) An entity listed in subdivision (a) of Section 19721 that is seeking to conduct sports wagering shall apply to the department for authorization to conduct sports wagering.

(b) (1) The department shall hear and decide, and in reasonable order, all applications to conduct sports wagering from licensed card rooms, licensed racing associations or racing fairs, federally recognized Indian tribes, and service providers.

(2) Authorization to conduct sports wagering shall not be unreasonably withheld from any applicant that is in good standing and has a current license issued pursuant to Chapter 4 (commencing with Section 19400) or Chapter 5 (commencing with Section 19800).

(c) Each licensed operator shall pay an annual fee of _____ ($_____) to the State Department of Public Health for deposit in the Gambling Addiction Program Fund.

(d) In consideration of the substantial value of each license, each licensed operator shall remit to the Treasurer on a quarterly basis for deposit in the _______ Fund an amount equal to _____ from the total win amount from the facilitation of a sports event wager.

19724.

 Within 270 days after the operative date of this chapter, the department shall adopt regulations for the administration of this chapter and may adopt regulations establishing fees in a reasonable amount necessary to recover the costs incurred by the department relating to the administration of this chapter.

19725.

 The regulations adopted by the department shall do both of the following:

(a) Provide for the approval of wagering rules and equipment by the department to ensure fairness to the public and compliance with state law, including, but not limited to, all of the following:

(1) Acceptance of wagers on a series of sports events.

(2) Types of wagering tickets that may be used.

(3) The method of issuing tickets.

(b) Govern all of the following:

(1) The extension of credit.

(2) The cashing, deposit, and redemption of checks or other negotiable instruments.

(3) The amount of cash reserves to be maintained by licensed operators to cover winning wagers.

(4) The provision of reliable records, accounts, and reports of transactions, operations, and events, the method of accounting to be used by licensed operators, and the types of records required to be maintained.

19726.

 The sports wagering authorized pursuant to this chapter shall be accepted and executed only using telephone, computer, or another method of electronic wagering communication.

19727.

 A licensed operator shall not do any of the following:

(a) Accept a wager from a person who is under 21 years of age.

(b) Accept a sports wager unless the transmission of a wager is initiated from within the State of California.

(c) Accept a wager from any person whose name appears on any self-exclusion list.

19728.

 Each licensed operator’s sports wagering Internet Web site shall contain information relating to problem gambling, including a telephone number that an individual may call to seek information and assistance for a potential gambling addiction.

19729.

 A licensed operator shall establish the odds it will pay on wagers placed on sports events.

19730.

 (a) A licensed operator shall not conduct any sports wagering in violation of this chapter, any regulation adopted pursuant to this chapter, or any governing local ordinance.

(b) Any person who willfully violates this chapter is guilty of a misdemeanor.

19731.

 (a) The department shall have all of the following responsibilities:

(1) To monitor the conduct of all licensed operators and other persons having a material involvement, directly or indirectly, with a sports wagering operation.

(2) To investigate suspected violations of this chapter.

(3) To investigate complaints that are lodged against licensed operators, or other persons associated with a sports wagering operation, by members of the public.

(4) To initiate, when appropriate, disciplinary actions. In connection with any disciplinary action pursuant to this chapter, the department may seek restriction, limitation, suspension, or revocation of any license, permit, authorization, or approval pursuant to this chapter, Chapter 4 (commencing with Section 19400), or Chapter 5 (commencing with Section 19800), or the imposition of a fine upon a person licensed, permitted, authorized, or approved pursuant to those chapters.

(5) To adopt regulations related to its functions and duties as specified in this chapter.

(6) To adopt regulations establishing fees in a reasonable amount necessary to recover the costs incurred by the department relating to the enforcement of this chapter.

(b) The department has all powers necessary and proper to enable it to carry out fully and effectually its duties and responsibilities as specified in this chapter.

19732.

 (a) The department shall make appropriate investigations as follows:

(1) To determine whether there has been any violation of this chapter or of any regulation adopted under this chapter.

(2) To determine any facts, conditions, practices, or matters that it may deem necessary or proper to aid in the enforcement of this chapter or of any regulation adopted under this chapter.

(3) To aid in adopting regulations.

(b) If, after any investigation pursuant to this chapter, the department is satisfied that a license, permit, authorization, or approval issued pursuant to this chapter, Chapter 4 (commencing with Section 19400), or Chapter 5 (commencing with Section 19800) should be suspended or revoked, it shall file an accusation in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.

(c) In addition to any action that it may take against a license, permit, finding of suitability, or approval, the department may also require the payment of fines or penalties. However, any fine imposed shall not exceed twenty thousand dollars ($20,000) for each separate violation of this chapter or of any regulation adopted under this chapter.

19733.

 The department shall have the authority to regulate sports wagering to the same extent that the department currently regulates other legal gambling in this state, including the ability to audit the books and records of a licensed operator.

19734.

 (a) This chapter shall become operative only if both of the following occur:

(1) The federal Professional and Amateur Sports Protection Act (28 U.S.C. Sec. 3701 et seq.) is amended or repealed to allow sports wagering in California.

(2) A state constitutional amendment to authorize sports wagering has been approved by the voters.

(b) This chapter shall become operative on the date that the Attorney General executes a declaration, which shall be retained by the Attorney General, stating that both of the events described in subdivision (a) have occurred.

(c) In addition to the requirements specified in subdivision (b), the Attorney General shall post the declaration on the department’s Internet Web site and the Attorney General shall send the declaration to the appropriate policy committees of the Legislature and to the Legislative Counsel.

336.9.

 (a) Notwithstanding Section 337a, and except as provided in subdivision (b), any person who, not for gain, hire, or reward other than that at stake under conditions available to every participant, knowingly participates in any of the ways specified in paragraph (2), (3), (4), (5), or (6) of subdivision (a) of Section 337a in any bet, bets, wager, wagers, or betting pool or pools made between the person and any other person or group of persons who are not acting for gain, hire, or reward, other than that at stake under conditions available to every participant, upon the result of any lawful trial, or purported trial, or contest, or purported contest, of skill, speed, or power of endurance of person or animal, or between persons, animals, or mechanical apparatus, is guilty of an infraction, punishable by a fine not to exceed two hundred fifty dollars ($250).

(b) Subdivision (a) does not apply to either any of the following situations:

(1) Any bet, bets, wager, wagers, or betting pool or pools made online.

(2) Betting pools with more than two thousand five hundred dollars ($2,500) at stake.

337a.

 (a) Except as provided in Section 336.9, and as authorized pursuant to Chapter 4.6 (commencing with Section 19720) of Division 8 of the Business and Professions Code, every person who engages in one of the following offenses, offenses shall be punished for a first offense by imprisonment in a county jail for a period of not more than one year or in the state prison, or by a fine not to exceed five thousand dollars ($5,000), or by both imprisonment and fine:

(1) Pool selling or bookmaking, with or without writing, at any time or place.

(2) Whether for gain, hire, reward, or gratuitously, or otherwise, keeps or occupies, for any period of time whatsoever, any room, shed, tenement, tent, booth, building, float, vessel, place, stand or enclosure, of any kind, or any part thereof, with a book or books, paper or papers, apparatus, device or paraphernalia, for the purpose of recording or registering any bet or bets, any purported bet or bets, wager or wagers, any purported wager or wagers, selling pools, or purported pools, upon the result, or purported result, of any trial, purported trial, contest, or purported contest, of skill, speed speed, or power of endurance of person or animal, or between persons, animals, or mechanical apparatus, or upon the result, or purported result, of any lot, chance, casualty, or unknown or contingent event whatsoever.

(3) Whether for gain, hire, reward, or gratuitously, or otherwise, receives, holds, or forwards, or purports or pretends to receive, hold, or forward, in any manner whatsoever, any money, thing or consideration of value, or the equivalent or memorandum thereof, staked, pledged, bet or wagered, or to be staked, pledged, bet or wagered, or offered for the purpose of being staked, pledged, bet or wagered, upon the result, or purported result, of any trial, or purported trial, or contest, or purported contest, of skill, speed speed, or power of endurance of person or animal, or between persons, animals, or mechanical apparatus, or upon the result, or purported result, of any lot, chance, casualty, or unknown or contingent event whatsoever.

(4) Whether for gain, hire, reward, or gratuitously, or otherwise, at any time or place, records, or registers any bet or bets, wager or wagers, upon the result, or purported result, of any trial, or purported trial, or contest, or purported contest, of skill, speed speed, or power of endurance of person or animal, or between persons, animals, or mechanical apparatus, or upon the result, or purported result, of any lot, chance, casualty, or unknown or contingent event whatsoever.

(5) Being the owner, lessee or occupant of any room, shed, tenement, tent, booth, building, float, vessel, place, stand, enclosure or grounds, or any part thereof, whether for gain, hire, reward, or gratuitously, or otherwise, permits that space to be used or occupied for any purpose, or in any manner prohibited by paragraph (1), (2), (3), or (4).

(6) Lays, makes, offers or accepts any bet or bets, or wager or wagers, upon the result, or purported result, of any trial, or purported trial, or contest, or purported contest, of skill, speed or power of endurance of person or animal, or between persons, animals, or mechanical apparatus.

(b) In any accusatory pleading charging a violation of this section, if the defendant has been once previously convicted of a violation of any subdivision of this section, the previous conviction shall be charged in the accusatory pleading, and, if the previous conviction is found to be true by the jury, upon a jury trial, or by the court, upon a court trial, or is admitted by the defendant, the defendant shall, if he or she is not imprisoned in the state prison, be imprisoned in the county jail for a period of not more than one year and pay a fine of not less than one thousand dollars ($1,000) and not to exceed ten thousand dollars ($10,000). Nothing in this paragraph shall prohibit a court from placing a person subject to this subdivision on probation. However, that person shall be required to pay a fine of not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000) or be imprisoned in the county jail for a period of not more than one year, as a condition thereof. In no event does the court have the power to absolve a person convicted pursuant to this subdivision from either being imprisoned or from paying a fine of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000).

(c) In any accusatory pleading charging a violation of this section, if the defendant has been previously convicted two or more times of a violation of any subdivision of this section, each previous conviction shall be charged in the accusatory pleadings. If two or more of the previous convictions are found to be true by the jury, upon a jury trial, or by the court, upon a court trial, or are admitted by the defendant, the defendant shall, if he or she is not imprisoned in the state prison, be imprisoned in the a county jail for a period of not more than one year or pay a fine of not less than one thousand dollars ($1,000) nor more than fifteen thousand dollars ($15,000), or be punished by both imprisonment and fine. Nothing in this paragraph shall prohibit a court from placing a person subject to this subdivision on probation. However, that person shall be required to pay a fine of not less than one thousand dollars ($1,000) nor more than fifteen thousand dollars ($15,000), or be imprisoned in the a county jail for a period of not more than one year as a condition thereof. In no event does the court have the power to absolve a person convicted and subject to this subdivision from either being imprisoned or from paying a fine of not more than fifteen thousand dollars ($15,000).

(d) Except where the existence of a previous conviction of any subdivision of this section was not admitted or not found to be true pursuant to this section, or the court finds that a prior conviction was invalid, the court shall not strike or dismiss any prior convictions alleged in the information or indictment.

(e) This section applies not only to persons who commit any of the acts designated in paragraphs (1) to (6), inclusive, of subdivision (a), as a business or occupation, but also applies to every person who in a single instance engages in any one of the acts specified in paragraphs (1) to (6), inclusive, of subdivision (a).