Arcadia Municipal Code Div. 1 Definitions

For the purpose of this Part certain words and terms are hereafter defined and shall have the meaning thus ascribed.

(Ord. No. 2392, § 1, 11-8-22)

This Part shall be known as the Sports Wagering Tax Ordinance of the City of Arcadia.

(Ord. No. 2392, § 1, 11-8-22)

An operator "accepts" a sports wager when the operator either (a) acquires a contingent obligation to pay the person placing the sports wager based on the outcome of the sports wager, (b) acquires an obligation as an intermediary or broker for, or otherwise facilitates the placement of a sports wager with, any third party, or (c) receives compensation from an online sports betting operator or other third party for facilitating online sports wagering or for operating an in-person location where online sports wagers may be placed. Acceptance occurs regardless of the ultimate outcome of the wager and regardless of whether the sports wager is placed at a physical location within the City, through an electronic application or service while at a physical location within the City, with a business within the City through the internet or other offsite service, or through any other means.

(Ord. No. 2392, § 1, 11-8-22)

"Operator" means any person engaged in the business of accepting sports wagers in the City of Arcadia. "Operator" also includes any person engaged in the business of operating a location in the City of Arcadia that facilitates online sports wagering or of operating an in-person location in the City of Arcadia where online sports wagers may be placed.

(Ord. No. 2392, § 1, 11-8-22)

"Sports Event" means any physical, athletic, or sporting competition or event, whether professional, collegiate or amateur, on which persons may lawfully accept a wager on the outcome of the competition or on any occurrence related to the competition. "Sports Event" shall also include but not be limited to competitive games, electronic sports competitions, video gaming competitions and similar events. "Sports Event" does not include horse races or horse race meetings.

(Ord. No. 2392, § 1, 11-8-22)

"Sports Wager" means a wager on any sports event or any portion thereof or occurrence therein, including but not limited to proposition bets on outcomes related to a sports event even if not part of the competition itself. This definition shall be inclusive of any system or method of wagering, including but not limited to single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, straight bets, and fantasy sports pools or competitions. "Sports Wager" shall also include any fee, charge, membership dues or similar costs imposed by an operator on a person placing a sports wager or offered by an operator as a condition of, or incentive for, placing a sports wager. Examples include, but are not limited to, charges for opportunities to place sports wagers at different prices or values or charges for opportunities to make wagers that otherwise would be unavailable to persons who have not paid the charge.

(Ord. No. 2392, § 1, 11-8-22)

"Sports Wagering Gross Revenue" means the total sum of all sports wagers an operator accepts in a reporting period, less only the total of all sums actually paid out as winnings in the same reporting period. "Sports Wagering Gross Revenue" also includes any compensation received from an online sports betting operator, or other third party, for facilitating online sports wagering or for operating an in-person location where online sports wagers may be placed.

A. For purposes of the deduction, amounts paid out as winnings includes amounts returned to persons because no party wins the wager.

B. Operators shall not make a deduction for any unredeemed winnings. Operators shall only make a deduction when winnings are actually paid out.

C. Operators shall not deduct the cash equivalent value of any merchandise or thing of value included in a jackpot, raffle, sweepstakes, or prize.

D. Sports wagering gross revenue is determined on a per-reporting period basis, regardless of when the outcome of a sports wager is subject to determination. For example, if the reporting period is quarterly, and the operator accepts a sports wager in the first quarter of the year for an event taking place in second quarter of the year, then the operator shall include the amount as sports wagering gross revenue in its first quarter return. The operator may then take a deduction when the patron redeems the winnings, which will either be in the second quarter or later.

(Ord. No. 2392, § 1, 11-8-22)

"Tax Administrator" means the City Administrative Services Director, or their designee.

(Ord. No. 2392, § 1, 11-8-22)

"Person" shall mean any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

(Ord. No. 2392, § 1, 11-8-22)