RÉSUMÉ DIGEST
ACT 141 (HB 357) 2020 Regular Session Magee
Existing law provides for the "Louisiana Fantasy Sports Contests Act", which called for a
proposition election held on Nov. 6, 2018, to determine whether fantasy sports contests were
to be permitted in a particular parish.
Existing law provides for a definition of "fantasy sports contests", which means any fantasy
or simulation sports game or contest played through the internet or mobile device with all
of the following elements:
(1)Participants create a simulation sports team based on the current membership of
actual amateur or professional sports organizations.
(2)All prizes and awards offered to winning participants are established and made
known to the participants in advance of the game or contest, and the value of the
prizes or awards is not determined by the number of participants or the amount of
any fees paid by those participants.
(3)All winning outcomes reflect the relative knowledge and skill of the participant and
are predominantly determined by accumulated statistical results of the performance
of the individuals, including athletes in the case of sporting events.
(4)No winning outcome is based on either of the following:
(a)On the score, point-spread, or any performance or performances of any single
real-world team or any combination of such teams.
(b)Solely on any single performance of an individual athlete in any single real-
world sporting or other event.
New law retains existing law and adds definitions for the terms "confidential information",
"entry fee", "fantasy sports contest operator", "fantasy sports contest player", "gross fantasy
sports contest revenues", "location percentage", and "net revenue".
Existing law authorizes the La. Gaming Control Board to adopt rules in accordance with the
Administrative Procedure Act to implement, administer, and regulate fantasy sports contests.
New law provides that the rules shall include but not be limited to:
(1)The issuance of any license, contract, or permit, subject to regulation of the board.
(2)The methods of and forms and procedures for making an application for a license,
contract, or permit to be considered by the board.
(3)The methods of and forms for providing to the board information concerning a
person's family, habits, character, associates, criminal record, business activities, and
financial affairs.
New law requires a fantasy sports contest operator to be licensed by the La. Gaming Control
Board. Provides that a fantasy sports contest operator shall:
(1)Be a person domiciled in La. or a domestic business entity with a certificate of
existence from the secretary of state and in good standing or a foreign corporation
with a certificate of authority to transact business in the state from the secretary of
state and in good standing.
(2)Demonstrate to the La. Gaming Control Board that the operator is suitable for
licensing pursuant to present law (R.S. 27:28).
(3)Provide the La. Gaming Board with financial statements indicating any gross fantasy
sports contest revenue for the previous three years.
New law provides that the initial application fee shall be $1,000 and shall be nonrefundable.
Further provides for fees after a term of three years. New law provides that all fees, fines, and other monies collected by the division, pursuant
to new law, shall be forwarded upon receipt to the state treasurer for immediate deposit into
the state treasury. An amount shall be allocated to the Dept. of Public Safety and
Corrections and to the Dept. of Justice, pursuant to legislative appropriation, for regulatory,
administrative, investigative, enforcement, legal, and other such expenses as may be
necessary and for activities associated with the enforcement of laws and regulations
governing fantasy sports contests.
New law provides that any fantasy sports contest operator that allows its license to lapse
without requesting an extension of time to file for a renewal is required to resubmit an initial
application for licensure. Further prohibits the transfer of a fantasy sports contest operator's
license.
New law requires the board to issue or deny a fantasy sports contest operator's license within
60 days of receipt of application for licensure. Requires the board to provide an operator
with specific reasons if a license is not issued. Prohibits the transfer of a fantasy sports
contest operator's license.
New law provides that as a condition of licensure, a fantasy sports contest operator is
required to submit evidence to the board that the operator has established and will implement
certain commercially reasonable procedures for fantasy sports contests that:
(1)Prevent employees of the fantasy sports contest operator and relatives of an
employee living in the same household as an employee of an operator from
competing in fantasy sports contests offered by an operator in which the operator
offers a cash prize to the general public.
(2)Prevent sharing of confidential information that could affect fantasy sports contests
with third parties until the information is made publicly available.
(3)Provide that no winning outcome is based on the score, point spread, or any
performance of any single actual sports team or combination of such teams or solely
on any single performance of an individual athlete or participant in any single real-
world sporting event.
(4)Ensure that any athletes and individuals who participate in or officiate a game or
competition that is the subject of a fantasy sports contest or any sports agent, team
employee, referee, or league official associated with a sport or athletic event do not
participate in fantasy sports contests.
(5)Verify that a fantasy sports contest player is 21 years of age or older.
(6)Provide fantasy sports contest players with access to information on responsible play.
(7)Provide fantasy sports contest players with access to the fantasy sports contest
player's play history and account details.
(8)Allow individuals to restrict themselves from entering a fantasy sports contest upon
request and provide reasonable steps to prevent the person entering fantasy sports
contests offered by an operator.
(9)Segregate fantasy sports contest player funds from operational funds or maintain a
reserve that exceeds the amount of player funds on deposit, which may not be used
for operational activities. Provides that reserve funds may take the form of cash,
cash equivalents, payment process reserves, payment processor receivables, an
irrevocable letter of credit, a bond, or a combination thereof in the amount that must
exceed the total balances of the fantasy sports contest players' accounts.
New law prohibits fantasy sports contests operators from offering fantasy sports contests
based on the performances of participants in high school or youth athletic events.
New law requires a licensed fantasy sports contest operator to:
(1)Annually contract with a certified public accountant to conduct an audit that is
consistent with the standards accepted by the American Institute of Certified Public
Accountants. (2)Submit to the board a copy of the audit report.
(3)Submit financial reports as required by new law (R.S. 27:310).
New law prohibits any person licensed pursuant to new law or any agent or employee thereof
from allowing a person under the age of 21 to be a fantasy sports contest player and from
allowing a person to participate in a fantasy sports contest in a parish in which a majority of
the qualified electors in the parish voting on the proposition to authorize fantasy sports in
the parish voted against the proposition. New law requires the licensee to withhold the
winnings of such persons.
New law provides for fines for certain violations of new law.
New law requires periodic reporting of gross fantasy sports contests, revenues, net revenue,
and financial statements regarding a fantasy sports contest operator's operations in La.
New law requires the La. Gaming Control Board to adopt as a rule a schedule of penalties
provided for by new law.
New law requires the gaming division of state police to conduct investigations, hearings, and
inquiries as it deems necessary to fulfill its responsibilities. Authorizes the suspension of
a license prior to a hearing if there is a written finding of danger to public health and welfare.
New law provides that as a condition of receiving a license, an operator shall agree that the
division and its agents and employees shall have unrestricted access and the right to inspect
any premises or electronic platform under the control of the operator in which any activity
relating to the provisions of new law is conducted.
New law, regarding active accounts, requires an operator to:
(1)Limit each authorized player to one active and continuously used account.
(2)Publish and facilitate parental control procedures to allow parents or guardians to
exclude minors from access to any contest or platform. Requires procedures to
include a toll-free number to call for help in establishing such parental controls.
(3)Make clear conspicuous statements that are not inaccurate or misleading concerning
the chances of winning and the number of winners when referencing the chances or
likelihood of winning.
(4)Permit any authorized player to permanently close an account registered to the player
on any and all platforms supported by the operator or registrant at any time and for
any reason.
(5)Identify all highly experienced players in any contest by a symbol attached to the
players' username, or by other visible means, on all platforms supported by the
operator or registrant.
(6)Implement measures to protect the privacy and online security of authorized players,
their accounts, and their personal financial information.
New law prohibits an operator from charging players for inactive accounts. Provides that
an operator shall only charge players for entry fees placed or contests entered.
Effective upon signature of the governor (June 9, 2020).
(Amends R.S. 27:302 and 304; Adds R.S. 27:306 through 315)