Second Substitute House Bill 1681 — Problem Gambling (Washington, 2023 Regular Session)
Summary
Second Substitute House Bill 1681 of the State of Washington's 68th Legislature, 2023 Regular Session, by House Finance. Its title states that it relates to problem gambling, amends RCW 41.05.750, 67.70.340, 82.04.285, 82.04.286 and 9.46.071, creates a new section, provides an effective date and declares an emergency. Section 1 recites that a 2021 prevalence study found 1.5 percent of all adults at a moderate-to-severe risk for developing a gambling disorder, and 3.5 percent of adults who gamble, and states the legislature's intent to provide long-term, dedicated funding for prevention, public awareness, education, clinical training, workforce development and treatment services. Section 8 states that the act takes effect July 1, 2023. The bill was read first time February 24, 2023.
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“Second Substitute House Bill 1681 — Problem Gambling (Washington, 2023 Regular Session).”
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H-1468.1
SECOND SUBSTITUTE HOUSE BILL 1681
State of Washington 68th Legislature 2023 Regular Session
By House Finance (originally sponsored by Representatives Stearns,
Lekanoff, Davis, Leavitt, Reeves, Pollet, and Orwall)
READ FIRST TIME 02/24/23.
1 AN ACT Relating to problem gambling; amending RCW 41.05.750,
2 67.70.340, 82.04.285, 82.04.286, and 9.46.071; creating a new
3 section; providing an effective date; and declaring an emergency.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
5 NEW SECTION. Sec. 1. (1) The legislature finds that:
6 (a) The costs to society of problem gambling and gambling
7 disorder include family disintegration, criminal activity, and
8 financial insolvencies;
9 (b) Individuals experiencing problem gambling and gambling
10 disorder are at significantly increased risks for other co-occurring
11 disorders, including substance use disorder and mental health issues
12 such as depression, anxiety, or other behavioral health concerns;
13 (c) Residents of Washington may participate in a variety of legal
14 gaming activities such as the state-run lottery, tribal gaming by
15 federally recognized Indian tribes, certain fund-raisers offered by
16 bona fide charitable and nonprofit organizations, and punchboards,
17 pull-tabs, and social card games approved as a commercial stimulant
18 at established businesses primarily engaged in the selling of food or
19 drink for consumption on the premises;
20 (d) A 2021 prevalence study found that among all adults, 1.5
21 percent are at a moderate-to-severe risk for developing a gambling
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1 disorder, and among adults who gamble, 3.5 percent are at a moderate-
2 to-severe risk of a gambling disorder;
3 (e) The 2022 problem gambling task force final report, delivered
4 to the legislature in December 2022, determined there are critical
5 gaps in providing state-funded comprehensive problem gambling
6 services to Washington residents, including:
7 (i) Prevention efforts not coordinated with other behavioral
8 health and substance abuse prevention initiatives;
9 (ii) Problem gambling treatment coverage is not available across
10 the state; and
11 (iii) No state-supported residential treatment services are
12 available in Washington state.
13 (2) The legislature intends to provide long-term, dedicated
14 funding for prevention, public awareness efforts, and education
15 regarding problem gambling disorder, clinical training, workforce
16 development, and accessible treatment services for individuals
17 impacted by problem gambling or gambling disorders as well as after-
18 care support.
19 Sec. 2. RCW 41.05.750 and 2018 c 201 s 2004 are each amended to
20 read as follows:
21 (1) A program for (a) the prevention and treatment of problem
22 ((and pathological)) gambling and gambling disorder; and (b) the
23 support, certification, and training of professionals in the
24 identification and treatment of problem ((and pathological)) gambling
25 and gambling disorder is established within the authority((, to be
26 administered by a qualified person who has training and experience in
27 problem gambling or the organization and administration of treatment
28 services for persons suffering from problem gambling)). The
29 department of health may license or certify ((and the)) behavioral
30 health agencies for problem gambling treatment. The authority may
31 contract ((with treatment facilities)) for any services provided
32 under the program. The authority shall ((track)) conduct a program
33 evaluation, including tracking program participation and ((client))
34 evaluating outcomes.
35 (2) To receive treatment under subsection (1) of this section, a
36 person must:
37 (a) Need treatment for problem ((or pathological)) gambling or
38 gambling disorder, or ((because of the problem or pathological
39 gambling of a family member, but be unable to afford treatment)) be
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1 impacted by a loved one experiencing problem gambling or gambling
2 disorder; and
3 (b) Be ((targeted)) identified by the authority as being most
4 amenable to and likely to benefit from treatment.
5 (3) Treatment under this section is available only to the extent
6 of the funds appropriated or otherwise made available to the
7 authority for this purpose. The authority may solicit and accept for
8 use any gift of money or property made by will or otherwise, and any
9 grant of money, services, or property from the federal government,
10 any tribal government, the state, or any political subdivision
11 thereof or any private source, and do all things necessary to
12 cooperate with the federal government or any of its agencies or any
13 tribal government in making an application for any grant.
14 (4)(a) The authority shall establish and facilitate an ongoing
15 advisory committee ((to assist it in designing, managing, and
16 evaluating the effectiveness of the program established in this
17 section. The advisory committee shall give due consideration in the
18 design and management of the program that persons who hold licenses
19 or contracts issued by the gambling commission, horse racing
20 commission, and lottery commission are not excluded from, or
21 discouraged from, applying to participate in the program. The
22 committee shall include, at a minimum, persons knowledgeable in the
23 field of problem and pathological gambling and persons representing
24 tribal gambling, privately owned nontribal gambling, and the state
25 lottery.
26 (5) For purposes of this section, "pathological gambling" is a
27 mental disorder characterized by loss of control over gambling,
28 progression in preoccupation with gambling and in obtaining money to
29 gamble, and continuation of gambling despite adverse consequences.
30 "Problem gambling" is an earlier stage of pathological gambling which
31 compromises, disrupts, or damages family or personal relationships or
32 vocational pursuits)) that will hold quarterly meetings to:
33 (i) Track progress of recommendations from the 2022 legislative
34 problem gambling task force final report;
35 (ii) Provide advice and feedback on the state problem gambling
36 program upon request by the authority; and
37 (iii) Discuss emerging issues related to problem gambling and
38 identify possible strategies for improvement.
39 (b) The advisory committee membership must include, at a minimum,
40 at least one representative from each of the following:
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1 (i) The Washington state gambling commission;
2 (ii) The Washington state lottery commission;
3 (iii) The Washington state horse racing commission;
4 (iv) The Washington state health care authority;
5 (v) The tribal gaming industry;
6 (vi) An established business that is primarily engaged in the
7 selling of food or drink for consumption on the premises and that
8 offers punchboards, pull-tabs, and social card games as a commercial
9 stimulant;
10 (vii) The gambling counselor certification committee;
11 (viii) A nonprofit problem gambling organization; and
12 (ix) The recovery community including at least one member with
13 lived experience of problem gambling.
14 Sec. 3. RCW 67.70.340 and 2012 1st sp.s. c 10 s 6 are each
15 amended to read as follows:
16 (1) The legislature recognizes that creating a shared game
17 lottery could result in less revenue being raised by the existing
18 state lottery ticket sales. The legislature further recognizes that
19 the fund most impacted by this potential event is the Washington
20 opportunity pathways account. Therefore, it is the intent of the
21 legislature to use some of the proceeds from the shared game lottery
22 to make up the difference that the potential state lottery revenue
23 loss would have on the Washington opportunity pathways account. The
24 legislature further intends to use some of the proceeds from the
25 shared game lottery to fund programs and services related to problem
26 ((and pathological)) gambling and gambling disorder.
27 (2) The Washington opportunity pathways account is expected to
28 receive ((one hundred two million dollars)) $102,000,000 annually
29 from state lottery games other than the shared game lottery. For
30 fiscal year 2011 and thereafter, if the amount of lottery revenues
31 earmarked for the Washington opportunity pathways account is less
32 than ((one hundred two million dollars)) $102,000,000, the
33 commission, after making the transfer required under subsection (3)
34 of this section, must transfer sufficient moneys from revenues
35 derived from the shared game lottery into the Washington opportunity
36 pathways account to bring the total revenue up to ((one hundred two
37 million dollars)) $102,000,000.
38 (3)(a) The commission shall transfer, from revenue derived from
39 the shared game lottery, to the problem gambling account created in
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1 RCW ((43.20A.892)) 41.05.751, an amount equal to the percentage
2 specified in (b) of this subsection of net receipts. For purposes of
3 this subsection, "net receipts" means the difference between (i)
4 revenue received from the sale of lottery tickets or shares and
5 revenue received from the sale of shared game lottery tickets or
6 shares; and (ii) the sum of payments made to winners.
7 (b) In fiscal year ((2006)) 2024, the percentage to be
8 transferred to the problem gambling account is ((one-tenth of one))
9 0.20 percent. In fiscal year ((2007)) 2025 and subsequent fiscal
10 years, the percentage to be transferred to the problem gambling
11 account is ((thirteen one-hundredths of one)) 0.26 percent.
12 (4) The commission shall transfer the remaining net revenues, if
13 any, derived from the shared game lottery "Powerball" authorized in
14 RCW 67.70.044(1) after the transfers pursuant to this section into
15 the state general fund for support for the program of basic education
16 under RCW 28A.150.200.
17 (5) The remaining net revenues, if any, in the shared game
18 lottery account after the transfers pursuant to this section shall be
19 deposited into the Washington opportunity pathways account.
20 Sec. 4. RCW 82.04.285 and 2014 c 97 s 303 are each amended to
21 read as follows:
22 (1) Upon every person engaging within this state in the business
23 of operating contests of chance; as to such persons, the amount of
24 tax with respect to the business of operating contests of chance is
25 equal to the gross income of the business derived from contests of
26 chance multiplied by the rate of 1.5 percent.
27 (2) An additional tax is imposed on those persons subject to tax
28 in subsection (1) of this section. The amount of the additional tax
29 with respect to the business of operating contests of chance is equal
30 to the gross income of the business derived from contests of chance
31 multiplied by the rate of ((0.1)) 0.2 percent through June 30,
32 ((2006)) 2024, and ((0.13)) 0.26 percent thereafter. The money
33 collected under this subsection (2) shall be deposited in the problem
34 gambling account created in RCW ((43.20A.892)) 41.05.751. This
35 subsection does not apply to businesses operating contests of chance
36 when the gross income from the operation of contests of chance is
37 less than ((fifty thousand dollars)) $50,000 per year.
38 (3)(a) For the purpose of this section, "contests of chance"
39 means any contests, games, gaming schemes, or gaming devices, other
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1 than the state lottery as defined in RCW 67.70.010, in which the
2 outcome depends in a material degree upon an element of chance,
3 notwithstanding that skill of the contestants may also be a factor in
4 the outcome. The term includes social card games, bingo, raffle, and
5 punchboard games, and pull-tabs as defined in chapter 9.46 RCW.
6 (b) The term does not include: (i) Race meet for the conduct of
7 which a license must be secured from the Washington horse racing
8 commission, (ii) "amusement game" as defined in RCW 9.46.0201, or
9 (iii) any activity that is not subject to regulation by the gambling
10 commission.
11 (4) "Gross income of the business" does not include the monetary
12 value or actual cost of any prizes that are awarded, amounts paid to
13 players for winning wagers, accrual of prizes for progressive jackpot
14 contests, or repayment of amounts used to seed guaranteed progressive
15 jackpot prizes.
16 Sec. 5. RCW 82.04.286 and 2005 c 369 s 6 are each amended to
17 read as follows:
18 (1) Upon every person engaging within this state in the business
19 of conducting race meets for the conduct of which a license must be
20 secured from the Washington horse racing commission; as to such
21 persons, the amount of tax with respect to the business of parimutuel
22 wagering is equal to the gross income of the business derived from
23 parimutuel wagering multiplied by the rate of ((0.1)) 0.2 percent
24 through June 30, ((2006)) 2024, and ((0.13)) 0.26 percent thereafter.
25 The money collected under this section shall be deposited in the
26 problem gambling account created in RCW ((43.20A.892)) 41.05.751.
27 (2) For purposes of this section, "gross income of the business"
28 does not include amounts paid to players for winning wagers, or taxes
29 imposed or other distributions required under chapter 67.16 RCW.
30 (3) The tax imposed under this section is in addition to any tax
31 imposed under chapter 67.16 RCW.
32 Sec. 6. RCW 9.46.071 and 2019 c 213 s 1 are each amended to read
33 as follows:
34 (1)(((a))) The legislature recognizes that some individuals in
35 this state ((have a gambling problem or)) are negatively impacted by
36 problem gambling and gambling disorder. Because the state promotes
37 and regulates gambling through the activities of the state lottery
38 commission, the Washington horse racing commission, and the
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1 Washington state gambling commission, the state has the
2 responsibility to continue to provide resources for the support of
3 ((services for)) problem gambling ((and gambling disorders.
4 (b) The)) services. Therefore, the Washington state gambling
5 commission, the Washington horse racing commission, and the state
6 lottery commission shall ((jointly develop)) maintain placement of
7 problem gambling and gambling disorder informational signs which
8 include a toll-free ((hotline)) helpline number for ((individuals
9 with a gambling problem or)) problem gambling and gambling disorder.
10 The signs shall be placed in the establishments of gambling
11 licensees, horse racing licensees, and lottery retailers.
12 (((c))) The Washington state gambling commission, the Washington
13 horse racing commission, and the state lottery commission may also
14 contract with other qualified entities to provide public awareness,
15 training, and other services to ensure the intent of this section is
16 fulfilled.
17 (((d))) (2) Individuals and families impacted by ((a gambling))
18 problem gambling or gambling disorder will benefit from the
19 availability of a uniform self-exclusion program where people may
20 voluntarily exclude themselves from gambling at multiple gambling
21 establishments by submitting one self-exclusion form to the state
22 from one location for all gambling activities. Therefore, the
23 Washington state gambling commission must establish a statewide self-
24 exclusion program for all licensees. The commission has discretion in
25 establishing the scope, process, and requirements of the self-
26 exclusion program, including denying, suspending, or revoking an
27 application, license, or permit. However, the initial program must
28 comply with the following minimum requirements:
29 (((i))) (a) The program must allow persons to voluntarily exclude
30 themselves from gambling at authorized gambling establishments that
31 offer house-banked social card games;
32 (((ii))) (b) The program must have a process for federally
33 recognized Indian tribes or tribal enterprises that own gambling
34 operations or facilities with class III gaming compacts to
35 voluntarily participate in the self-exclusion program;
36 (((iii))) (c)(i) Any individual registered with the self-
37 exclusion program created under this section is prohibited from
38 participating in gambling activities associated with this program and
39 forfeits all moneys and things of value obtained by the individual or
40 owed to the individual by an authorized gambling establishment as a
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1 result of prohibited wagers or gambling activities. The commission
2 may adopt rules for the forfeiture of any moneys or things of value,
3 including wagers, obtained by an authorized gambling establishment
4 while an individual is registered with the self-exclusion program
5 created under this section.
6 (ii) Moneys and things of value forfeited under the self-
7 exclusion program must be distributed to the problem gambling account
8 created in RCW 41.05.751 and/or a charitable or nonprofit
9 organization that provides problem gambling services or increases
10 awareness about problem gambling pursuant to rules adopted by the
11 commission; and
12 (((iv))) (d) The commission must adopt rules establishing the
13 self-exclusion program by June 30, 2021.
14 (((e))) (3) An individual who participates in the self-exclusion
15 program does not have a cause of action against the state of
16 Washington, the commission, or any gambling establishment, its
17 employees, or officers for any acts or omissions in processing or
18 enforcing the requirements of the self-exclusion program, including a
19 failure to prevent an individual from gambling at an authorized
20 gambling establishment.
21 (((f))) (4) Any personal information collected, stored, or
22 accessed under the self-exclusion program may only be used for the
23 administration of the self-exclusion program and may not be
24 disseminated for any purpose other than the administration of the
25 self-exclusion program.
26 (((2))) (5)(a) During any period in which RCW 82.04.285(2) is in
27 effect, the commission may not increase fees payable by licensees
28 under its jurisdiction for the purpose of funding services for
29 problem gambling and gambling disorder. Any fee imposed or increased
30 by the commission, for the purpose of funding these services, before
31 July 1, 2005, has no force and effect after July 1, 2005.
32 (b) During any period in which RCW 82.04.285(2) is not in effect:
33 (i) The commission, the Washington state horse racing commission,
34 and the state lottery commission may contract for services, in
35 addition to those authorized in subsection (1) of this section, to
36 assist in providing for problem gambling and gambling disorder
37 treatment; and
38 (ii) The commission may increase fees payable by licensees under
39 its jurisdiction for the purpose of funding the problem gambling and
40 gambling disorder services authorized in this section.
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1 NEW SECTION. Sec. 7. If any provision of this act or its
2 application to any person or circumstance is held invalid, the
3 remainder of the act or the application of the provision to other
4 persons or circumstances is not affected.
5 NEW SECTION. Sec. 8. This act is necessary for the immediate
6 preservation of the public peace, health, or safety, or support of
7 the state government and its existing public institutions, and takes
8 effect July 1, 2023.
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