§ 36–621.06. Operator licensure.

*NOTE: This section includes amendments by emergency legislation that will expire on October 13, 2024. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Permanent Version.*

(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, if applicable;

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

(G) The location of the proposed sports wagering facility, if applicable; 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;

(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 $1,000,000, 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 $500,000 renewal fee.

(C)(i) In addition to the license fee, the Office may charge a processing fee for an initial or renewed license in an amount equal to the projected cost of processing the application and performing any background investigations.

(ii) If the actual cost exceeds the projected cost, an additional fee may be charged to meet the actual cost. If the projected cost exceeds the actual cost, the difference may be refunded to the applicant or licensee.

(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) Sports wagering shall not be offered within a 2-block radius of any of the designated facilities except by the licensed Class A operator assigned to the designated facility.

(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.

(c-1)(1) The Office may issue a Class C operator license to an eligible sports team applicant or its assignee; provided, that the applicant or its assignee shall not offer mobile or online sports wagering within a 2-block radius of any of the designated facilities.

(2) An eligible sports team applicant under this subsection shall:

(A) Be registered with the governing body of Major League Baseball, Major League Soccer, the National Basketball Association, the National Football League, the National Hockey League, the National Women's Soccer League, or the Women's National Basketball Association;

(B) Play 90% or more of its home games within the District of Columbia; and

(3)(A) A Class C operator license may be assigned, delegated, or subcontracted to a commercial partner that provides sports wagering through a mobile or online application upon the approval of the Office.

(B) A Class C operator license shall be issued for 5 years and require a non-refundable application fee of $2,000,000, which shall be submitted with the application.

(C) A Class C 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 $1,000,000 renewal fee.

(D) A Class C operator shall not be required to obtain a separate retailer license.

(E) A Class C operator license held by a sports team or its commercial partner shall be revoked by the Office if that sports team fails to comply with the requirements of paragraph (2) of this subsection.

(4)(A) The Office shall issue a temporary Class C operator license to an eligible applicant within one week of receiving:

(i) Proof that the applicant is an eligible sports team or proof that an eligible sports team has assigned, delegated, or subcontracted its Class C operator licensing eligibility to the applicant as its commercial partner;

(ii) Proof that the applicant or its management services provider is licensed to offer mobile sports wagering in not fewer than 5 jurisdictions of the United States pursuant to a state or territorial regulatory structure, either directly or through a parent company or affiliated subsidiary; and

(iii) The non-refundable application fee.

(B) A temporary Class C license shall permit the holder to immediately commence offering mobile sports wagering in the District and shall remain valid until a final determination on such application is made.

(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) A Class A operator that operates sports wagering conducted over the internet, through mobile applications, or through other digital forms, more than 2 blocks from its designated facility, shall be subject to section 311(g).