DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 758 Original 2024 Regular Session Davis
Abstract: Provides relative to regulation of fantasy sports contests and sports wagers.
Present law (R.S. 27:301, et seq.) provides for the La. Fantasy Sports Contests Act.
Proposed law retains present law in general.
Present law (R.S. 27:302) provides for definitions.
Proposed law retains present law and defines the term "content partner", "expert" or "influencer",
and "independent evaluator". Further clarifies the definition of "fantasy sports contest".
Proposed law provides that a person shall meet the following criteria in order to be approved by the
board to act as an independent evaluator of fantasy sports contests in this state:
(1)Have experience and expertise in evaluating and rating the content of fantasy sports contests
as well as in conducting audits, to the satisfaction of the board.
(2)Maintain an audit process that is constructed, executed, and maintained by no less than one
in-house certified public accountant who is both licensed and active in practice with the
expertise necessary to conduct the audit. The audit process shall receive approval from the
board that it properly tests for internal controls and all key assertions, subject to the
discretion of the board, including completeness, existence, accuracy, valuation, occurrence,
and presentation.
(3)Meet any other criteria the board deems appropriate.
Proposed law provides that the duties of the independent evaluator shall be as follows:
(1)Have evaluation and rating procedures that are unable to be adjusted, duplicated, or altered
by any person, employed by or associated with a fantasy sports contest operator, who has the
specific intent to deceive or confuse the general public regarding the accuracy of the content
of the influencer's or expert's fantasy sports contest after the results of the content of the
related fantasy sports contest are known to the general public.
(2)Be able to determine the success or failure rate of the content of a fantasy sports contest. (3)Ensure a fantasy sports contest licensee has appropriate firewalls, organizational structures,
and standard operating procedures so that an influencer or expert is not capable of receiving
any material, non-public information from the applicable licensee and that the fantasy sports
contest licensee does not receive material, non-public information that could affect a betting
market from an expert or influencer.
(4)Disclose to the board all political contributions that he has made in the prior 12 months.
(5)Report to the board on a quarterly basis.
(6)Swear or affirm that he has and shall continue to meet the necessary criteria provided in
proposed law.
(7)Perform any other duties the board deems appropriate.
Proposed law provides that an independent evaluator is prohibited from doing any of the following:
(1)Having any direct or indirect financial interest, ownership, or management in any activities
involving fantasy sports contests. This includes the holding of any stocks, bonds, or other
similar financial interests.
(2)Receiving or sharing in, whether directly or indirectly, the receipts or proceeds of any
activities involving fantasy sports contests.
(3)Having any revenue-sharing relationship with or other financial interest in a fantasy sports
contest licensee or fantasy sports contest operator.
(4)Having any of the following conflicts:
(a)A controlling interest owner or employee who directly engages in fantasy sports
contests or a fantasy sports contest platform.
(b)A controlling interest owner or employee who derives financial benefit from any
fantasy sports contest licensee through a cost per acquisition or revenue sharing
affiliate relationship to a sports book operator, fantasy sports contest operator, or
peer-to-peer platforms.
Proposed law provides that no controlling interest owner or employee of an independent evaluator
shall participate in any fantasy sports contest.
Proposed law shall not limit a fantasy sports contest licensee from marketing the performance
rendered by the independent evaluator, provided those marketing materials display accurate
attributes.
Proposed law provides that anyone who applies to be an independent evaluator shall apply annually to the board and receive approval from the board to act as an independent evaluator. Further provides
that such approval shall require a review of the criteria provided in proposed law.
Proposed law provides that any person who applies to be an independent evaluator shall pay all
reasonable costs to the board relating to the investigation required pursuant to proposed law.
Proposed law provides that the board may promulgate rules and regulations in accordance with the
Administrative Procedure Act to establish additional criteria and qualifications for independent
evaluators in accordance with proposed law.
Proposed law provides that upon receipt of the report from an independent evaluator pursuant to
proposed law, the board may utilize its regulatory authority to address any issues contained in the
report.
Proposed law provides that the board shall issue regulations clarifying what qualifies as fantasy
sports contest content and such determination shall be within the sole discretion of the board.
Proposed law shall not prohibit any of the following:
(1)The assessment of activities involving sports wagers as provided in present law (R.S. 27:601,
et seq.) from an independent evaluator who has been accredited by the board.
(2)The right of freedom of speech granted to all persons under the First Amendment of the
Constitution of the US.
Proposed law provides that the board shall accredit certain independent evaluators to assess the
content of fantasy sports contests, specifically content from experts or influencers for fantasy sports
contests and their content partners. Further provides that the board shall have nine months to
identify and accredit independent evaluators.
Proposed law provides that once the accreditation of an independent evaluator has occurred, fantasy
sports contest licensees, experts or influencers, and content partners shall have nine months to
contract directly with an accredited independent evaluator.
Proposed law provides that the cost of these services to the fantasy sports contest licensees shall not
exceed 1% of the annual gross gaming revenue for both fantasy sports contests and sports wagers
and shall be dispersed among the fantasy sports contest licensees at the discretion of the board.
Further provides that the fantasy sports contest licensees shall contract with and pay the accredited
independent evaluator directly.
Proposed law provides that the board may, at its discretion, issue temporary accreditations if it deems
such issuance in the best interest of the state.
Present law (R.S. 27:601, et seq.) provides for the La. Sports Wagering Act. Proposed law retains present law in general.
Present law (R.S. 27:602) provides for definitions.
Proposed law retains present law and defines the term "content partner", "expert" or "influencer",
and "independent evaluator". Further clarifies the definition of "sports wager" or "sports bet".
Proposed law provides that a person shall meet the following criteria in order to be approved by the
board to act as an independent evaluator of sports wagers in this state:
(1)Have experience and expertise in evaluating and rating the content of sports wagers as well
as in conducting audits, to the satisfaction of the board.
(2)Maintain an audit process that is constructed, executed, and maintained by no less than one
in-house certified public accountant who is both licensed and active in practice with the
expertise necessary to conduct the audit. The audit process shall receive approval from the
board that it properly tests for internal controls and all key assertions, subject to the
discretion of the board, including completeness, existence, accuracy, valuation, occurrence,
and presentation.
(3)Meet any other criteria the board deems appropriate.
Proposed law provides that the duties of the independent evaluator shall be as follows:
(1)Have evaluation and rating procedures that are unable to be adjusted, duplicated, or altered
by any person, employed by or associated with a sports wagering operator, who has the
specific intent to deceive or confuse the general public regarding the accuracy of the content
of the influencer's or expert's sports wagers after the results of the content of the related
sports wagers are known to the general public.
(2)Be able to determine the success or failure rate of the content of a sports wager.
(3)Ensure a sports wagering licensee or platform provider has appropriate firewalls,
organizational structures, and standard operating procedures so that an influencer or expert
is not capable of receiving any material, non-public information from the applicable sports
wagering licensee or platform provider and that the sports wagering platform provider does
not receive material, non-public information that could affect a betting market from an expert
or influencer.
(4)Disclose to the board all political contributions that he has made in the prior 12 months.
(5)Report to the board on a quarterly basis.
(6)Swear or affirm that he has and shall continue to meet the necessary criteria provided in
proposed law. (7)Perform any other duties the board deems appropriate.
Proposed law provides that an independent evaluator is prohibited from doing any of the following:
(1)Having any direct or indirect financial interest, ownership, or management in any activities
involving sports wagers. This includes the holding of any stocks, bonds, or other similar
financial interests.
(2)Receiving or sharing in, whether directly or indirectly, the receipts or proceeds of any
activities involving sports wagers.
(3)Having any revenue-sharing relationship with or other financial interest in a sports wagering
licensee or sports wagering operator.
(4)Having any of the following conflicts:
(a)A controlling interest owner or employee who directly engages in sports wagers or
a sports wagering platform.
(b)A controlling interest owner or employee who derives financial benefit from any
sports wagering licensee through a cost per acquisition or revenue sharing affiliate
relationship to a sports book operator, sports wagering operator, or peer-to-peer
platforms.
Proposed law provides that no controlling interest owner or employee of an independent evaluator
shall participate in any sports wager.
Proposed law shall not limit a sports wagering platform provider from marketing the performance
rendered by the independent evaluator, provided those marketing materials display accurate
attributes.
Proposed law provides that anyone who applies to be an independent evaluator shall apply annually
to the board and receive approval from the board to act as an independent evaluator. Further provides
that such approval shall require a review of the criteria provided in proposed law.
Proposed law provides that any person who applies to be an independent evaluator shall pay all
reasonable costs to the board relating to the investigation required pursuant to proposed law.
Proposed law provides that the board may promulgate rules and regulations in accordance with the
Administrative Procedure Act to establish additional criteria and qualifications for independent
evaluators in accordance with proposed law.
Proposed law provides that upon receipt of the report from an independent evaluator pursuant to
proposed law, the board may utilize its regulatory authority to address any issues contained in the
report. Proposed law provides that the board shall issue regulations clarifying what qualifies as content that
constitutes as a sports wager and such determination shall be within the sole discretion of the board.
Proposed law shall not prohibit any of the following:
(1)The assessment of activities involving fantasy sports contests as provided in present law
(R.S. 27:301, et seq.) from an independent evaluator who has been accredited by the board.
(2)The right of freedom of speech granted to all persons under the First Amendment of the
Constitution of the U.S.
Proposed law provides that the board shall accredit certain independent evaluators to assess the
content of sports wagers, specifically content from experts or influencers for sports wagers and their
content partners. Further provides that the board shall have nine months to identify and accredit
independent evaluators.
Proposed law provides that once the accreditation of an independent evaluator has occurred, sports
wagering licensees, experts or influencers, and content partners shall have nine months to contract
directly with an accredited independent evaluator.
Proposed law provides that the cost of these services to the sports wagering licensees shall not
exceed 1% of the annual gross gaming revenue for both fantasy sports contests and sports wagers
and shall be dispersed among the sports wagering platform providers at the discretion of the board.
Further provides that the sports wagering platform providers shall contract with and pay the
accredited independent evaluator directly.
Proposed law provides that the board may, at its discretion, issue temporary accreditations if it deems
such issuance in the best interest of the state.
(Amends R.S. 27:302(3)-(11) and 602(6)-(28); Adds R.S. 27:302(12)-(14), 321, 321.1, 602(29)-(31),
630, and 631)