Code of the District of Columbia

§ 36–621.06. Operator licensure.

(a)(1) To offer sports wagering in the District, an individual, group of individuals, or entity shall obtain an operator license, the application for which shall be in a form determined by the Office and shall require:

(A) The name of the applicant;

(B) The mailing address and, if a corporation, the name of the state in which it is incorporated, the location of its principal place of business, and the names and addresses of its directors;

(C) A report of the applicant's financial activities, including evidence of financial stability, such as bank statements, business and personal income and disbursement schedules, tax returns, or other documentation, satisfactory to the Office, that demonstrates that the applicant has sufficient business ability and experience to establish and maintain a successful sports wagering business;

(D) A description of the proposed internal controls and security systems to be used in conducting sports wagering or processing sports wagering transactions;

(E) The number of employees expected to be employed at the proposed sports wagering facility;

(F) The estimated tax revenue to be generated by the sports wagering facility;

(G) The location of the proposed sports wagering facility; and

(H) Any other information the Office considers necessary and appropriate.

(2) In determining whether to approve an application for an operator license, the Office shall consider whether the applicant:

(A) Is proposing a sports wagering operation that will have a positive impact through increased revenues on the District and its residents;

(B) Possesses adequate funds or has secured adequate financing to commence and maintain a sports wagering operation;

(C) Has the financial stability, integrity, and responsibility to conduct sports wagering;

(D) Has sufficient business ability and experience to create and maintain a successful sports wagering operation;

(E) Has proposed adequate measures for internal and external security, including a surveillance system or protocol;

(F) Has satisfied the sports wagering license requirements;

(G) Has demonstrated that its proposed sports wagering operation will be conducted in accordance with this subchapter and all other applicable District and federal law;

(H) Has been convicted of a disqualifying offense, as established by regulation by the Office pursuant to this subchapter;

(I) Is an SBE; or

(J)(i) Has entered into a labor peace agreement with each labor organization that is actively engaged in representing or attempting to represent employees in the gaming, hospitality, or food and beverage industries in the District; provided, that the labor peace agreement shall:

(I) Be a written agreement between the applicant and the labor organization that contains, at a minimum, a provision protecting the District's revenues by prohibiting the labor organization or its members from engaging in any picketing, work stoppage, boycott, or other economic interference with the applicant's sports wagering operations during any effort by the labor organization to organize employees for purposes of collective bargaining representation; and

(II) Apply to a sports wagering operation conducted at a Class A sports wagering facility approved by the Office, whether conducted directly by the applicant or by a management service provider under a management services agreement with the applicant.

(ii) A labor peace agreement shall be enforceable under section 301(a) of the Labor Management Relations Act,1947, enacted June 23, 1947 (61 Stat. 136; 29 U.S.C. § 185(a)), or through other applicable law, after the best efforts of the parties at resolving a dispute have failed.

(b)(1) The Office may issue a Class A operator license to an applicant whose sports wagering facility will be located within any of the following locations: Capital One Arena (601 F Street, N.W., and described as Lot 0047, Square 0455), Audi Field (100 Potomac Avenue, S.W., and described as Lot 0027, Square 0665), Nationals Park (1500 South Capitol Street, S.E., and described as Lot 0016, Square 0705), or St. Elizabeths East Entertainment and Sports Arena (St. Elizabeth's Campus, 1100 Oak Drive, S.E., and described as Lots 0837 and 0838, Square 5868S) ("designated facilities").

(2) The Office shall not issue a Class B operator license to an applicant whose sports wagering facility will be located within a designated facility.

(3)(A) Except as provided in § 36-621.16, a Class A operator license shall be issued for 5 years and require a non-refundable application fee of $500,000, which shall be submitted with the application.

(B) A Class A operator license may be renewed for 5-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 $250,000 renewal fee.

(c)(1) Subject to paragraph (2) of this subsection, the Office may issue a Class B operator license to an applicant whose facility will be located outside of any of the designated facilities.

(2) The Office shall not issue a Class B operator license to any applicant whose sports wagering facility will be located within a 2-block radius of any of the designated facilities.

(3) District operated sports wagering shall not be offered within a 2-block radius of any of the designated facilities.

(4)(A) Except as provided in § 36-621.16, a Class B operator license shall be issued for 5 years and require a non-refundable application fee of $100,000, which shall be submitted with the application.

(B) A Class B operator license may be renewed for 5-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 $50,000 renewal fee.

(d) As a condition of licensure, an operator shall be bonded, in such amounts and in such manner as determined by the Office, and agree, in writing, to indemnify and to 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 an operator license to the licensee.

(e) Notwithstanding § 36-601.01(c)(20), a Class A operator may apply to operate sports wagering conducted over the internet, through mobile applications, or through other digital forms, but not through a physical location, outside of the physical confines of its approved sports wagering facility, within 2 blocks of its designated facility; provided, that the sports wagering conducted by a Class A operator over the internet, through mobile applications, or through other digital forms may not function within the physical confines of a different Class A operator's designated facility.


(Mar. 10, 1981, D.C. Law 3-172, § 306; as added May 3, 2019, D.C. Law 22-312, § 2(e), 66 DCR 1402; Sept. 11, 2019, D.C. Law 23-16, § 7052(b), 66 DCR 8621.)

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 creation of this section by D.C. Law 22-312 has been implemented.

Section 7177 of the Fiscal Year 2020 Budget Support Emergency Amendment Act of 2019 (D.C. Act 23-91) amended § 5 of D.C. Law 22-312 removing the applicability restriction impacting this section. Therefore the amendment of this section by D.C. Law 22-312 has been given effect.

Applicability of D.C. Law 22-312: § 5 of D.C. Law 22-312 provided that the creation of this section by § 2(e) 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.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7052(b) of Fiscal Year 2020 Budget Support Congressional Review Emergency Act of 2019 (D.C. Act 23-112, Sept. 4, 2019, 66 DCR 11964).

For temporary (90 days) amendment of applicability provision of D.C. Law 22-312, see § 7177 of Fiscal Year 2020 Budget Support Congressional Review Emergency Act of 2019 (D.C. Act 23-112, Sept. 4, 2019, 66 DCR 11964).

For temporary (90 days) amendment of this section, see § 7052(b) of Fiscal Year 2020 Budget Support Emergency Act of 2019 (D.C. Act 23-91, July 22, 2019, 66 DCR 8497).

For temporary (90 days) amendment of applicability provision of D.C. Law 22-312, see § 7177 of Fiscal Year 2020 Budget Support Emergency Act of 2019 (D.C. Act 23-91, July 22, 2019, 66 DCR 8497).

For temporary (90 days) amendment of this section, see §§ 2(b) and 3(b) of the Sports Wagering Lottery Clarification Congressional Review Emergency Amendment Act of 2019 (D.C. Act 23-47, Apr. 15, 2019, 66 DCR 5301).

For temporary (90 days) creation of this section, see § 2(e) of the Sports Wagering Lottery Congressional Review Emergency Amendment Act of 2018 (D.C. Act 23-43, Apr. 15, 2019, 66 DCR 5273).

For temporary (90 days) creation of this section, see § 2(e) of the Sports Wagering Lottery Emergency Amendment Act of 2018 (D.C. Act 22-630, Jan. 30, 2019, 66 DCR 1745).