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H.B. 108 Enrolled





Chief Sponsor: Stephen E. Sandstrom

Senate Sponsor: John L. Valentine

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Criminal Code regarding the definition of gambling.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines Internet gambling;
             13          .    clarifies that gambling, which is prohibited in Utah, includes any form of Internet
             14      gambling;
             15          .    provides that any person who knowingly transmits, receives, or relays any form of
             16      Internet or online gambling into or within this state is guilty of a class A
             17      misdemeanor;
             18          .    provides that if any federal law authorizes Internet gambling in the states, this state
             19      shall opt out of allowing Internet gambling by the procedure provided in the federal
             20      law; and
             21          .    provides an exemption for an Internet service provider or hosting company, a
             22      provider of public telecommunications services, and an Internet advertising service
             23      that is routing or providing connections without selecting the material.
             24      Money Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          This bill takes effect on July 1, 2012.
             28      Utah Code Sections Affected:
             29      AMENDS:

             30          76-10-1101, as last amended by Laws of Utah 2009, Chapter 382
             31          76-10-1102, as last amended by Laws of Utah 1998, Chapter 127
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 76-10-1101 is amended to read:
             35           76-10-1101. Definitions.
             36          As used in this part:
             37          (1) (a) "Fringe gambling" means any gambling, lottery, or video gaming device which
             38      is:
             39          (i) given, conducted, or offered for use or sale by a business in exchange for anything
             40      of value; or
             41          (ii) given away incident to the purchase of other goods or services.
             42          (b) "Fringe gambling" does not include a gambling, lottery, video gaming device, or
             43      other promotional activity which is clearly occasional and ancillary to the primary activity of
             44      the business.
             45          (2) (a) "Gambling" means risking anything of value for a return or risking anything of
             46      value upon the outcome of a contest, game, gaming scheme, or gaming device when the return
             47      or outcome:
             48          (i) is based upon an element of chance; and
             49          (ii) is in accord with an agreement or understanding that someone will receive
             50      something of value in the event of a certain outcome.
             51          (b) "Gambling" includes a lottery and fringe gambling.
             52          (c) "Gambling" does not include:
             53          (i) a lawful business transaction; or
             54          (ii) playing an amusement device that confers only an immediate and unrecorded right
             55      of replay not exchangeable for value.
             56          (3) "Gambling bet" means money, checks, credit, or any other representation of value.
             57          (4) "Gambling device or record" means anything specifically designed for use in

             58      gambling or used primarily for gambling.
             59          (5) "Gambling proceeds" means anything of value used in gambling.
             60          (6) "Internet gambling" or "online gambling" means gambling or gaming by use of:
             61          (a) the Internet; or
             62          (b) any mobile electronic device that allows access to data and information.
             63          [(6)] (7) "Lottery" means any scheme for the disposal or distribution of property by
             64      chance among persons who have paid or promised to pay any valuable consideration for the
             65      chance of obtaining property, or portion of it, or for any share or any interest in property, upon
             66      any agreement, understanding, or expectation that it is to be distributed or disposed of by lot or
             67      chance, whether called a lottery, raffle, or gift enterprise, or by whatever name it is known.
             68          [(7)] (8) "Video gaming device" means any device that possesses all of the following
             69      characteristics:
             70          (a) a video display and computer mechanism for playing a game;
             71          (b) the length of play of any single game is not substantially affected by the skill,
             72      knowledge, or dexterity of the player;
             73          (c) a meter, tracking, or recording mechanism that records or tracks any money, tokens,
             74      games, or credits accumulated or remaining;
             75          (d) a play option that permits a player to spend or risk varying amounts of money,
             76      tokens, or credits during a single game, in which the spending or risking of a greater amount of
             77      money, tokens, or credits:
             78          (i) does not significantly extend the length of play time of any single game; and
             79          (ii) provides for a chance of greater return of credits, games, or money; and
             80          (e) an operating mechanism that requires inserting money, tokens, or other valuable
             81      consideration in order to function.
             82          Section 2. Section 76-10-1102 is amended to read:
             83           76-10-1102. Gambling.
             84          (1) A person is guilty of gambling if [he] the person:
             85          (a) participates in gambling, including any Internet or online gambling;

             86          (b) knowingly permits any gambling to be played, conducted, or dealt upon or in any
             87      real or personal property owned, rented, or under the control of the actor, whether in whole or
             88      in part; or
             89          (c) knowingly allows the use of any video gaming device that is:
             90          (i) in any business establishment or public place; and
             91          (ii) accessible for use by any person within the establishment or public place.
             92          (2) Gambling is a class B misdemeanor, [provided, however,] except that any person
             93      who is [twice] convicted two or more times under this section [shall be] is guilty of a class A
             94      misdemeanor.
             95          (3) (a) A person is guilty of a class A misdemeanor who intentionally provides or
             96      offers to provide any form of Internet or online gambling to any person in this state.
             97          (b) Subsection (3)(a) does not apply to an Internet service provider or hosting company
             98      as defined in Section 76-10-1230 , a provider of public telecommunications services as defined
             99      in Section 54-8b-2 , or an Internet advertising service by reason of the fact that the Internet
             100      service provider, hosting company, Internet advertising service, or provider of public
             101      telecommunications services:
             102          (i) transmits, routes, or provides connections for material without selecting the
             103      material; or
             104          (ii) stores or delivers the material at the direction of a user.
             105          (4) If any federal law is enacted that authorizes Internet gambling in the states and that
             106      federal law provides that individual states may opt out of Internet gambling, this state shall opt
             107      out of Internet gambling in the manner provided by federal law and within the time frame
             108      provided by that law.
             109          (5) Whether or not any federal law is enacted that authorizes Internet gambling in the
             110      states, this section acts as this state's prohibition of any gambling, including Internet gambling,
             111      in this state.
             112          Section 3. Effective date.
             113          This bill takes effect on July 1, 2012.


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