SECTIONS 19984 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 19984

19984. Notwithstanding any other law, a licensed gambling
enterprise may contract with a third party for the purpose of
providing proposition player services at a gambling establishment,
subject to the following conditions:
(a) Any agreement, contract, or arrangement between a gambling
enterprise and a third-party provider of proposition player services
shall be approved in advance by the department, and in no event shall
a gambling enterprise or the house have any interest, whether direct
or indirect, in funds wagered, lost, or won.
(b) The commission shall establish reasonable criteria for, and
require the licensure and registration of, any person or entity that
provides proposition player services at gambling establishments
pursuant to this section, including owners, supervisors, and players.
Those employed by a third-party provider of proposition player
services, including owners, supervisors, observers, and players,
shall wear a badge which clearly identifies them as proposition
players whenever they are present within a gambling establishment.
The commission may impose licensing requirements, disclosures,
approvals, conditions, or limitations as it deems necessary to
protect the integrity of controlled gambling in this state, and may
assess and collect reasonable fees and deposits as necessary to
defray the costs of providing this regulation and oversight.
(c) The department, pursuant to regulations of the commission, is
empowered to perform background checks, financial audits, and other
investigatory services as needed to assist the commission in
regulating third party providers of proposition player services, and
may assess and collect reasonable fees and deposits as necessary to
defray the costs of providing this regulation and oversight. The
department may adopt emergency regulations in order to implement this
subdivision.
(d) No agreement or contract between a licensed gambling
enterprise and a third party concerning the provision of proposition
player services shall be invalidated or prohibited by the department
pursuant to this section until the commission establishes criteria
for, and makes determinations regarding the licensure or registration
of, the provision of these services pursuant to subdivision (b).