| 1 | 1 | | |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | 2025 -- H 6076 |
|---|
| 6 | 6 | | ======== |
|---|
| 7 | 7 | | LC002172 |
|---|
| 8 | 8 | | ======== |
|---|
| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
|---|
| 10 | 10 | | IN GENERAL ASSEMBLY |
|---|
| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
|---|
| 12 | 12 | | ____________ |
|---|
| 13 | 13 | | |
|---|
| 14 | 14 | | A N A C T |
|---|
| 15 | 15 | | RELATING TO BUSINESSES AND PROFESSIONS -- FANTASY SPORTS CONSUMER |
|---|
| 16 | 16 | | PROTECTION ACT |
|---|
| 17 | 17 | | Introduced By: Representatives Slater, Potter, and Diaz |
|---|
| 18 | 18 | | Date Introduced: March 12, 2025 |
|---|
| 19 | 19 | | Referred To: House Finance |
|---|
| 20 | 20 | | |
|---|
| 21 | 21 | | |
|---|
| 22 | 22 | | It is enacted by the General Assembly as follows: |
|---|
| 23 | 23 | | SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS" 1 |
|---|
| 24 | 24 | | is hereby amended by adding thereto the following chapter: 2 |
|---|
| 25 | 25 | | CHAPTER 97 3 |
|---|
| 26 | 26 | | FANTASY SPORTS CONSUMER PROTECTION ACT 4 |
|---|
| 27 | 27 | | 5-97-1. Short title. 5 |
|---|
| 28 | 28 | | This chapter shall be known and may be cited as the “Fantasy Sports Consumer Protection 6 |
|---|
| 29 | 29 | | Act.” 7 |
|---|
| 30 | 30 | | 5-97-2. Definitions. 8 |
|---|
| 31 | 31 | | For purposes of this chapter, the following words, terms and phrases shall have the 9 |
|---|
| 32 | 32 | | following meanings: 10 |
|---|
| 33 | 33 | | (1) "Adjusted gross fantasy contest receipts" means the amount equal to the total of all 11 |
|---|
| 34 | 34 | | entry fees that a fantasy contest operator collects from all participants less only the total of all prizes 12 |
|---|
| 35 | 35 | | paid out as prizes to all participants multiplied by the location percentage for this state. 13 |
|---|
| 36 | 36 | | (2) “Applicant” means a fantasy contest operator that submits an application for licensure 14 |
|---|
| 37 | 37 | | under this chapter. 15 |
|---|
| 38 | 38 | | (3) “Athlete” means professional or amateur competitors in real-world sports events or an 16 |
|---|
| 39 | 39 | | organized video game competition that is regulated by a governing body and that is held between 17 |
|---|
| 40 | 40 | | players who play individually or as teams. 18 |
|---|
| 41 | 41 | | |
|---|
| 42 | 42 | | |
|---|
| 43 | 43 | | LC002172 - Page 2 of 9 |
|---|
| 44 | 44 | | (4) "Department" means the department of business regulation. 1 |
|---|
| 45 | 45 | | (5) "Entry fee" means a cash or cash equivalent that is paid by a participant in advance to 2 |
|---|
| 46 | 46 | | participate in a fantasy contest offered by a fantasy contest operator. 3 |
|---|
| 47 | 47 | | (6) "Fantasy contest" means an online fantasy or simulated game or contest of skill with an 4 |
|---|
| 48 | 48 | | entry fee in which: 5 |
|---|
| 49 | 49 | | (i) Multiple participants compete against each other; 6 |
|---|
| 50 | 50 | | (ii) The values of all prizes offered to a winning participant are established and made 7 |
|---|
| 51 | 51 | | known to the participant in advance of the contest; 8 |
|---|
| 52 | 52 | | (iii) All winning outcomes reflect the relative knowledge and skill of the participant; 9 |
|---|
| 53 | 53 | | (iv) The participant assembles a fictional entry or roster of actual athletes; 10 |
|---|
| 54 | 54 | | (v) A participant competes for prizes awarded by a fantasy contest operator based on terms 11 |
|---|
| 55 | 55 | | and conditions published by the fantasy contest operator and made known to the participant in 12 |
|---|
| 56 | 56 | | advance of the contest; 13 |
|---|
| 57 | 57 | | (vi) Winning outcomes are determined solely by clearly established scoring criteria based 14 |
|---|
| 58 | 58 | | on one or more statistical results of the performance of an individual athlete including, but not 15 |
|---|
| 59 | 59 | | limited to, a fantasy score; 16 |
|---|
| 60 | 60 | | (vii) No winning outcome is based on the score, point spread, or any performance of any 17 |
|---|
| 61 | 61 | | single actual team or combination of teams or solely on any single performance of an individual 18 |
|---|
| 62 | 62 | | athlete or player in any single actual event; and 19 |
|---|
| 63 | 63 | | (viii) "Fantasy contest" does not include any fantasy contest without an entry fee. 20 |
|---|
| 64 | 64 | | (7) "Fantasy contest operator" means a person or entity that offers fantasy contests to 21 |
|---|
| 65 | 65 | | members of the public. "Fantasy contest operator" does not include an Internet service provider or 22 |
|---|
| 66 | 66 | | a provider of mobile data services merely as a result of that entity's transporting general traffic that 23 |
|---|
| 67 | 67 | | may include a fantasy contest. 24 |
|---|
| 68 | 68 | | (8) "Location percentage" means the percentage rounded to the nearest one-tenth of one 25 |
|---|
| 69 | 69 | | percent (0.1%) of the total entry fees collected from players located in this state, divided by the 26 |
|---|
| 70 | 70 | | total entry fees collected from all players in the fantasy contest. 27 |
|---|
| 71 | 71 | | (9) "Participant" means an individual who participates in a fantasy contest offered by a 28 |
|---|
| 72 | 72 | | fantasy contest operator. “Participant” does not include a fantasy contest operator by virtue of 29 |
|---|
| 73 | 73 | | doing any combination of the following: 30 |
|---|
| 74 | 74 | | (i) Setting house rules for a contest; 31 |
|---|
| 75 | 75 | | (ii) Assigning a salary or target score to any eligible athlete or player; 32 |
|---|
| 76 | 76 | | (iii) Accepting an entry fee from a fantasy contest participant; or 33 |
|---|
| 77 | 77 | | (iv) Awarding or disbursing prizes in conformance with this chapter. 34 |
|---|
| 78 | 78 | | |
|---|
| 79 | 79 | | |
|---|
| 80 | 80 | | LC002172 - Page 3 of 9 |
|---|
| 81 | 81 | | (10) “Prohibited participant” means an individual who has self-excluded under § 5-97-10 1 |
|---|
| 82 | 82 | | or an athlete, coach, referee, trainer, or team staff when the fantasy contest entry includes athlete 2 |
|---|
| 83 | 83 | | selections from sports events overseen by the same sports governing body which oversees the 3 |
|---|
| 84 | 84 | | athlete, coach, referee, trainer or team staff in question. 4 |
|---|
| 85 | 85 | | (11) “Sporting event” means a real-world athletic event or an organized video game 5 |
|---|
| 86 | 86 | | competition or other event approved by the department that is regulated by a governing body and 6 |
|---|
| 87 | 87 | | that is held between athletes who play individually or as teams. 7 |
|---|
| 88 | 88 | | (12) “Sports governing body” means the organization that prescribes final rules and 8 |
|---|
| 89 | 89 | | enforces codes of conduct with respect to a sporting event and athletes therein. 9 |
|---|
| 90 | 90 | | 5-97-3. Department duties and powers. 10 |
|---|
| 91 | 91 | | (a) The department shall regulate the conduct of fantasy contest operators under this 11 |
|---|
| 92 | 92 | | chapter. 12 |
|---|
| 93 | 93 | | (b) The department shall adopt any rules and regulations necessary for the successful 13 |
|---|
| 94 | 94 | | implementation, administration, and enforcement of this chapter. The department shall adopt rules 14 |
|---|
| 95 | 95 | | and regulations no later than one hundred eighty (180) days after the effective date of this chapter. 15 |
|---|
| 96 | 96 | | Rules and regulations proposed by the department may be adopted as emergency rules pursuant to 16 |
|---|
| 97 | 97 | | § 42-35-2.10. 17 |
|---|
| 98 | 98 | | (c) The department shall levy and collect all fees, surcharges, civil penalties, and taxes 18 |
|---|
| 99 | 99 | | imposed under § 5-97-9. 19 |
|---|
| 100 | 100 | | (d) The department shall require fantasy contest operators to implement procedures to 20 |
|---|
| 101 | 101 | | prevent fraud, abuse, and money laundering. 21 |
|---|
| 102 | 102 | | (e) The department shall verify that fantasy contest operators establish technical and 22 |
|---|
| 103 | 103 | | operational measures to prevent underage participation in a fantasy contest. 23 |
|---|
| 104 | 104 | | (f) The department shall verify that fantasy contest operators deploy identity verification 24 |
|---|
| 105 | 105 | | procedures, which may require the use of a reputable independent third party that is in the business 25 |
|---|
| 106 | 106 | | of verifying an individual's personally identifiable information and can detect potential prohibited 26 |
|---|
| 107 | 107 | | participants. 27 |
|---|
| 108 | 108 | | (g) The department shall verify that fantasy contest operators employ mechanisms on the 28 |
|---|
| 109 | 109 | | operator's platform that are designed to detect and prevent unauthorized accounts and to detect and 29 |
|---|
| 110 | 110 | | prevent fraud, money laundering, and collusion. 30 |
|---|
| 111 | 111 | | (h) The department shall require the use of geolocation technology to verify that a 31 |
|---|
| 112 | 112 | | participant is not entering fantasy contests from a restricted jurisdiction. 32 |
|---|
| 113 | 113 | | (i) The department shall adopt rules and regulations establishing compulsive and problem 33 |
|---|
| 114 | 114 | | gaming standards for fantasy contest operators that are consistent with this chapter. 34 |
|---|
| 115 | 115 | | |
|---|
| 116 | 116 | | |
|---|
| 117 | 117 | | LC002172 - Page 4 of 9 |
|---|
| 118 | 118 | | (j) The department may exercise any other powers necessary to enforce the provisions of 1 |
|---|
| 119 | 119 | | this chapter. 2 |
|---|
| 120 | 120 | | (k) The department and fantasy contest operator licensees shall cooperate with 3 |
|---|
| 121 | 121 | | investigations conducted by law enforcement agencies including, but not limited to, providing and 4 |
|---|
| 122 | 122 | | facilitating the provision of account-level entry and participation information. 5 |
|---|
| 123 | 123 | | (l) A fantasy contest operator licensee shall make all reasonable efforts to promptly notify 6 |
|---|
| 124 | 124 | | the department of any information relating to: 7 |
|---|
| 125 | 125 | | (1) A confirmed breach of the relevant sport's governing body's internal rules and codes of 8 |
|---|
| 126 | 126 | | conduct, if provided to the fantasy contest operator, pertaining to participation in real-money 9 |
|---|
| 127 | 127 | | fantasy contests; 10 |
|---|
| 128 | 128 | | (2) Any conduct that corrupts any outcome related to a sports event or sports events for 11 |
|---|
| 129 | 129 | | purposes of financial gain, including match fixing; and 12 |
|---|
| 130 | 130 | | (3) Confirmed illegal activities, including use of funds derived from illegal activity, entries 13 |
|---|
| 131 | 131 | | to conceal or launder funds derived from illegal activity, multi-accounting, and using false 14 |
|---|
| 132 | 132 | | identification. 15 |
|---|
| 133 | 133 | | 5-97-4. License. 16 |
|---|
| 134 | 134 | | (a) Except as otherwise provided in this section, a person shall not offer fantasy contests in 17 |
|---|
| 135 | 135 | | this state unless the person is licensed by the department as a fantasy contest operator. 18 |
|---|
| 136 | 136 | | (b) An applicant for a license issued under this chapter shall submit an application in the 19 |
|---|
| 137 | 137 | | form required by the department. The applicant shall submit fingerprints for a national criminal 20 |
|---|
| 138 | 138 | | history record check by a law enforcement agency. The fingerprints shall be furnished by the 21 |
|---|
| 139 | 139 | | applicant's owners, officers, and directors of a corporation, managers and members of a limited 22 |
|---|
| 140 | 140 | | liability company, and partners of a partnership. The fingerprints shall be accompanied by a signed 23 |
|---|
| 141 | 141 | | authorization for the release of information by the law enforcement agency. The department may 24 |
|---|
| 142 | 142 | | require additional background checks on licensees when they apply for license renewal, and an 25 |
|---|
| 143 | 143 | | applicant convicted of a disqualifying offense shall not be licensed. This subsection does not require 26 |
|---|
| 144 | 144 | | an applicant or individual who has submitted to a national criminal history record check in this state 27 |
|---|
| 145 | 145 | | or any other state within twelve (12) months before submitting the application to resubmit to 28 |
|---|
| 146 | 146 | | another criminal history record check if the applicant or individual submits the results of the 29 |
|---|
| 147 | 147 | | previous criminal history record check and affirms that there has been no material change in the 30 |
|---|
| 148 | 148 | | criminal history since the time of the criminal history record check. 31 |
|---|
| 149 | 149 | | (c) The information required by the department shall include documentation of all of the 32 |
|---|
| 150 | 150 | | following: 33 |
|---|
| 151 | 151 | | (1) The name of the applicant. 34 |
|---|
| 152 | 152 | | |
|---|
| 153 | 153 | | |
|---|
| 154 | 154 | | LC002172 - Page 5 of 9 |
|---|
| 155 | 155 | | (2) The location of the applicant's principal place of business. 1 |
|---|
| 156 | 156 | | (3) The applicant's contact information. 2 |
|---|
| 157 | 157 | | (4) The applicant's social security number or, if applicable, the applicant's federal tax 3 |
|---|
| 158 | 158 | | identification number. 4 |
|---|
| 159 | 159 | | (5) The name and address of each individual that holds a ten percent (10%) or more 5 |
|---|
| 160 | 160 | | ownership interest in the applicant or in shares of the applicant. 6 |
|---|
| 161 | 161 | | (6) The applicant's criminal record, if any, or, if the applicant is a business entity, on 7 |
|---|
| 162 | 162 | | request, any criminal record of an individual who is a director, officer, or key employee of the 8 |
|---|
| 163 | 163 | | applicant or any individual who has a ten percent (10%) or more ownership interest in the applicant. 9 |
|---|
| 164 | 164 | | (7) Any ownership interest that a director, officer, key employee, or individual owner of 10 |
|---|
| 165 | 165 | | ten percent (10%) or more of the applicant holds in a business that is or was a fantasy contest 11 |
|---|
| 166 | 166 | | operator or similar entity in any jurisdiction. 12 |
|---|
| 167 | 167 | | (8) An identification of any business in which an applicant or a director, officer, key 13 |
|---|
| 168 | 168 | | employee, or individual owner of ten percent (10%) or more of the applicant has an equity interest 14 |
|---|
| 169 | 169 | | of five percent (5%) or more. If a business has been identified under this subsection, documentation 15 |
|---|
| 170 | 170 | | shall be provided showing the state in which the business is incorporated or registered, if applicable. 16 |
|---|
| 171 | 171 | | (9) Whether an applicant, director, officer, key employee, or individual owner of ten 17 |
|---|
| 172 | 172 | | percent (10%) or more of the applicant has ever applied for or been granted any license, registration, 18 |
|---|
| 173 | 173 | | or certificate issued by a licensing authority in this state or any other jurisdiction for a gaming 19 |
|---|
| 174 | 174 | | activity. 20 |
|---|
| 175 | 175 | | (10) Whether an applicant or a director, officer, key employee, or individual owner of ten 21 |
|---|
| 176 | 176 | | percent (10%) or more of the applicant has filed or been served with a complaint or other notice 22 |
|---|
| 177 | 177 | | filed by a public body regarding the delinquency in payment of or dispute over filings concerning 23 |
|---|
| 178 | 178 | | the payment of any tax required under federal, state, or local law, including the amount of tax, the 24 |
|---|
| 179 | 179 | | type of tax, the taxing agency and the time periods involved. 25 |
|---|
| 180 | 180 | | (11) Information sufficient to show, as determined by the department, that the applicant 26 |
|---|
| 181 | 181 | | can meet the requirements of procedures submitted by the applicant and any rules and regulations 27 |
|---|
| 182 | 182 | | pursuant to this chapter. 28 |
|---|
| 183 | 183 | | (d) The department may adopt rules and regulations to establish additional qualifications 29 |
|---|
| 184 | 184 | | and requirements to preserve the integrity and security of fantasy contests in this state and to 30 |
|---|
| 185 | 185 | | promote and maintain a competitive fantasy sports market. 31 |
|---|
| 186 | 186 | | (e) Upon receipt of a completed application and required fee, the department shall conduct 32 |
|---|
| 187 | 187 | | the necessary background investigation to determine if the applicant meets the qualifications for 33 |
|---|
| 188 | 188 | | licensure. Upon completion of the necessary background investigation, the department shall either 34 |
|---|
| 189 | 189 | | |
|---|
| 190 | 190 | | |
|---|
| 191 | 191 | | LC002172 - Page 6 of 9 |
|---|
| 192 | 192 | | issue a license or deny the application. If the application for licensure is denied, a statement setting 1 |
|---|
| 193 | 193 | | forth the grounds for denial shall be forwarded to the applicant together with all other documents 2 |
|---|
| 194 | 194 | | relied on by the department, to the extent allowed by law. 3 |
|---|
| 195 | 195 | | 5-97-5. Fantasy contests. 4 |
|---|
| 196 | 196 | | (a) Any fantasy contest does not constitute gambling for any purpose. 5 |
|---|
| 197 | 197 | | (b) Notwithstanding any provision of law to the contrary, the operation of fantasy contests 6 |
|---|
| 198 | 198 | | is only lawful when conducted in accordance with the provisions of this chapter. 7 |
|---|
| 199 | 199 | | (c) A person participating in a fantasy contest shall be at least eighteen (18) years of age. 8 |
|---|
| 200 | 200 | | (d) A licensee may only accept an entry from a person physically located in the state. A 9 |
|---|
| 201 | 201 | | fantasy contest operator shall use a geolocation system to ensure that a participant is physically 10 |
|---|
| 202 | 202 | | present in the state when submitting a fantasy contest entry unless otherwise authorized by the 11 |
|---|
| 203 | 203 | | department. 12 |
|---|
| 204 | 204 | | (e) This chapter shall be construed liberally to promote the general welfare of the public 13 |
|---|
| 205 | 205 | | and integrity of the fantasy sports industry. However, the department shall not adopt rules or 14 |
|---|
| 206 | 206 | | regulations limiting or regulating the rules or administration of an individual fantasy contest, the 15 |
|---|
| 207 | 207 | | statistical makeup of a fantasy contest, or the digital platform of a fantasy contest operator. Further, 16 |
|---|
| 208 | 208 | | the department shall not limit or restrict the types of fantasy contests allowed, by labelling any such 17 |
|---|
| 209 | 209 | | contests as sports wagering. 18 |
|---|
| 210 | 210 | | (f) No licensed fantasy contest operator shall be forced to surrender or terminate its license 19 |
|---|
| 211 | 211 | | prior to the date of expiration of the license solely by virtue of an amendment to the rules adopted 20 |
|---|
| 212 | 212 | | by this chapter. 21 |
|---|
| 213 | 213 | | 5-97-6. Issuance and denial of license. 22 |
|---|
| 214 | 214 | | (a) The initial license fee for a fantasy contest operator that operated in this state, before 23 |
|---|
| 215 | 215 | | the effective date of this chapter, shall be fifteen percent (15%) of its adjusted gross fantasy contest 24 |
|---|
| 216 | 216 | | receipts from the preceding calendar year or ten thousand dollars ($10,000), whichever is less. The 25 |
|---|
| 217 | 217 | | initial license fee for a fantasy contest operator that did not operate in this state for at least twelve 26 |
|---|
| 218 | 218 | | (12) months before the effective date of this chapter shall be five thousand dollars ($5,000); 27 |
|---|
| 219 | 219 | | provided that, such a fantasy sports contest operator shall remit a supplemental license fee of fifteen 28 |
|---|
| 220 | 220 | | percent (15%) of its adjusted gross fantasy sports contest receipts for the twelve (12) month period 29 |
|---|
| 221 | 221 | | beginning on the date of licensure less the initial license fee, or five thousand dollars ($5,000), 30 |
|---|
| 222 | 222 | | whichever is less. 31 |
|---|
| 223 | 223 | | (b) A fantasy contest operator that was offering contests to persons located in this state 32 |
|---|
| 224 | 224 | | before the effective date of this chapter may continue to offer contests to persons located in this 33 |
|---|
| 225 | 225 | | state until the fantasy contest operator's application for licensure has been approved or denied if the 34 |
|---|
| 226 | 226 | | |
|---|
| 227 | 227 | | |
|---|
| 228 | 228 | | LC002172 - Page 7 of 9 |
|---|
| 229 | 229 | | fantasy contest operator files an application for licensure with the department within ninety (90) 1 |
|---|
| 230 | 230 | | days after the adoption of the rules and regulations promulgated pursuant to and under the 2 |
|---|
| 231 | 231 | | provisions of this chapter. 3 |
|---|
| 232 | 232 | | (c) Licenses issued by the department shall remain in effect for four (4) years. The 4 |
|---|
| 233 | 233 | | department shall establish a process for renewal with a renewal fee being one percent (1%) of the 5 |
|---|
| 234 | 234 | | adjusted gross fantasy contests receipts for the preceding four (4) years. 6 |
|---|
| 235 | 235 | | (d) A fantasy contest operator that allows its license to lapse, without requesting an 7 |
|---|
| 236 | 236 | | extension of time to file, shall resubmit an initial application. An extension may be granted by the 8 |
|---|
| 237 | 237 | | department upon receipt of a written request. 9 |
|---|
| 238 | 238 | | (e) A fantasy contest operator applying for a license or renewal of a license may operate 10 |
|---|
| 239 | 239 | | during the application period unless the department has reasonable cause to believe that the fantasy 11 |
|---|
| 240 | 240 | | contest operator is or may be in violation of the provisions of this chapter and the department 12 |
|---|
| 241 | 241 | | requires the fantasy contest operator to suspend the operation of any fantasy contest until the license 13 |
|---|
| 242 | 242 | | or renewal of a license is issued. 14 |
|---|
| 243 | 243 | | 5-97-7. Independent audits. 15 |
|---|
| 244 | 244 | | (a) As part of its submission for licensure or renewal, an applicant shall: 16 |
|---|
| 245 | 245 | | (1) Contract with a certified public accountant to conduct an independent audit, consistent 17 |
|---|
| 246 | 246 | | with generally accepted accounting principles; 18 |
|---|
| 247 | 247 | | (2) Annually contract with a certified public accountant, or another professional service 19 |
|---|
| 248 | 248 | | provider, recognized by the department to verify compliance with the provisions of this chapter; 20 |
|---|
| 249 | 249 | | and 21 |
|---|
| 250 | 250 | | (3) Submit to the department a copy of the audit report and a copy of the compliance report 22 |
|---|
| 251 | 251 | | of the certified public accountant or professional service provider. 23 |
|---|
| 252 | 252 | | (b) An initial applicant is not required to submit an audit report until the twenty-four (24) 24 |
|---|
| 253 | 253 | | months following the issuance of a license to the licensee. 25 |
|---|
| 254 | 254 | | 5-97-8. Reporting prohibited conduct -- Investigations of prohibited conduct. 26 |
|---|
| 255 | 255 | | (a) The department shall investigate all reasonable allegations of prohibited conduct and 27 |
|---|
| 256 | 256 | | refer any allegations it deems credible to the appropriate law enforcement entity. 28 |
|---|
| 257 | 257 | | (b) The identity of any reporting person shall remain confidential unless that person 29 |
|---|
| 258 | 258 | | authorizes disclosure of the person's identity or until the allegation of prohibited conduct is referred 30 |
|---|
| 259 | 259 | | to law enforcement. 31 |
|---|
| 260 | 260 | | (c) If the department receives a complaint of prohibited conduct by an athlete, the 32 |
|---|
| 261 | 261 | | department shall notify the appropriate sports governing body of the athlete to review the complaint 33 |
|---|
| 262 | 262 | | as provided by rule and regulation of the department. 34 |
|---|
| 263 | 263 | | |
|---|
| 264 | 264 | | |
|---|
| 265 | 265 | | LC002172 - Page 8 of 9 |
|---|
| 266 | 266 | | (d) The department shall adopt rules and regulation's governing investigations of prohibited 1 |
|---|
| 267 | 267 | | conduct and referrals to law enforcement entities. 2 |
|---|
| 268 | 268 | | 5-97-9. Imposition of tax. 3 |
|---|
| 269 | 269 | | For the fiscal year beginning on July 1, 2025, for the privilege of holding a license to 4 |
|---|
| 270 | 270 | | operate fantasy contests, the state shall impose and collect a tax at a rate of ten percent (10%) of 5 |
|---|
| 271 | 271 | | the fantasy contest operator's adjusted gross fantasy contests receipts. The accrual method of 6 |
|---|
| 272 | 272 | | accounting shall be used for purposes of calculating the amount of the tax owed by the licensee. 7 |
|---|
| 273 | 273 | | The fantasy contest operator shall submit to the department, on or before the last day of each 8 |
|---|
| 274 | 274 | | calendar month, a return indicating the amount of tax due for the previous calendar month as well 9 |
|---|
| 275 | 275 | | as any other information the department shall require and shall remit to the department payment of 10 |
|---|
| 276 | 276 | | the tax due with the return. 11 |
|---|
| 277 | 277 | | 5-97-10. Compulsive gaming -- Voluntary self-exclusion. 12 |
|---|
| 278 | 278 | | (a) Each licensee shall include a statement regarding obtaining assistance with real-money 13 |
|---|
| 279 | 279 | | gaming problems on the licensee's portal, website, computer or mobile application and on all 14 |
|---|
| 280 | 280 | | marketing materials and advertisements of the licensee. 15 |
|---|
| 281 | 281 | | (b) A resident, or nonresident if allowed to participate in fantasy contests, may voluntarily 16 |
|---|
| 282 | 282 | | prohibit themselves from establishing a fantasy contest account with a fantasy contest operator. 17 |
|---|
| 283 | 283 | | The department shall incorporate the voluntary self-exclusion program for fantasy contests into any 18 |
|---|
| 284 | 284 | | existing self-exclusion program that it operates on the effective date of this chapter. 19 |
|---|
| 285 | 285 | | (c) If a self-excluded person participates in a fantasy contest, the fantasy contest operator 20 |
|---|
| 286 | 286 | | shall report to the department, at a minimum, the name of the self-excluded person, the date of 21 |
|---|
| 287 | 287 | | participation, the amount or value of any money, prizes, or awards forfeited, if any, and any other 22 |
|---|
| 288 | 288 | | action taken. 23 |
|---|
| 289 | 289 | | (d) A fantasy contest operator may not pay any prize or award to a person who is on the 24 |
|---|
| 290 | 290 | | department's self-exclusion list. Any prize or award won by a person on the self-exclusion list is 25 |
|---|
| 291 | 291 | | forfeited and shall be donated by the fantasy contest operator to the problem gaming charities or 26 |
|---|
| 292 | 292 | | programs as identified and directed by the department on a quarterly basis by the twenty-fifth day 27 |
|---|
| 293 | 293 | | of the following month. 28 |
|---|
| 294 | 294 | | (e) A fantasy contest operator shall develop and maintain a program to mitigate compulsive 29 |
|---|
| 295 | 295 | | play and curtail compulsive play, which may be in conjunction with the department. 30 |
|---|
| 296 | 296 | | SECTION 2. This act shall take effect upon passage. 31 |
|---|
| 297 | 297 | | ======== |
|---|
| 298 | 298 | | LC002172 |
|---|
| 299 | 299 | | ======== |
|---|
| 300 | 300 | | |
|---|
| 301 | 301 | | |
|---|
| 302 | 302 | | LC002172 - Page 9 of 9 |
|---|
| 303 | 303 | | EXPLANATION |
|---|
| 304 | 304 | | BY THE LEGISLATIVE COUNCIL |
|---|
| 305 | 305 | | OF |
|---|
| 306 | 306 | | A N A C T |
|---|
| 307 | 307 | | RELATING TO BUSINESSES AND PROFESSIONS -- FANTASY SPORTS CONSUMER |
|---|
| 308 | 308 | | PROTECTION ACT |
|---|
| 309 | 309 | | *** |
|---|
| 310 | 310 | | This act would empower the department of business regulation (DBR) to license and 1 |
|---|
| 311 | 311 | | regulate fantasy contest operators conducting fantasy sports contests limited to participants located 2 |
|---|
| 312 | 312 | | within the state. This act would also levy a ten percent (10%) tax on their adjusted gross receipts. 3 |
|---|
| 313 | 313 | | This act would take effect upon passage. 4 |
|---|
| 314 | 314 | | ======== |
|---|
| 315 | 315 | | LC002172 |
|---|
| 316 | 316 | | ======== |
|---|