10 Del. Admin. Code § 301-9.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 301-9.0 - Authorized Players' Accounts

9.1 Registrant shall limit each authorized player to one active and continuously used account, and prevent prohibited players from maintaining accounts or participating in any contest offered by such operator or registrant.

9.1.1 Identification of authorized players:

9.1.1.1 Registrant shall take commercially and technologically reasonable measure to verify authorized players' true identities and shall use such information, at a minimum, to enforce subsection 9.1.

9.1.2 Termination of authorized players that establish more than one account: registrant shall implement and prominently publish procedures to terminate all accounts of any authorized player that establishes or seeks to establish more than one username or more than one account, whether directly or by use of another person as proxy. Such procedures may allow an authorized player that establishes or seeks to establish more than one username or more than one account to retain one account provided that the registrant investigates and makes a good-faith determination that the authorized player's conduct was not intended to obtain a competitive advantage. An authorized player who has established more than one account will not be entitled to retain any winnings earned from any account during the time period that more than one account is active.

9.1.2.1 No proxy servers:

9.1.2.1.1 Registrant shall not allow authorized players to use a proxy server for the purpose of misrepresenting their location in order to engage in interactive fantasy sports contests.

9.1.2.2 No proxy players:

9.1.2.2.1 Registrant shall take commercially and technologically reasonable measures to prevent one authorized player from acting as a proxy for another. Such measures shall include, without limitation, use of geolocation technologies to prevent simultaneous logins to a single account from geographically inconsistent locations.

9.2 Registrant shall implement measures to protect the privacy and online security of authorized players and their accounts.

9.3 Registrant shall permit any authorized player to permanently close an account registered to such player, on any or all platforms supported by such operator or registrant, at any time and for any reason.

9.3.1 Registrant shall implement and prominently publish procedures that allow any authorized player to permanently close an account at any time and for any reason.

9.3.2 Payments of prizes on closed accounts:

9.3.2.1 If a prize is awarded to an authorized player with a closed account, that prize, to the extent it consists of funds, shall be distributed by the registrant within five business days, provided, however, if an account is closed based on the registrant's good faith belief, after investigation, that the authorized player has engaged in fraud or has attempted to engage in contest play that would put the registrant in violation of this regulation, such prize may be withheld, provided that the prize is then awarded to another participant in the contest who would have won the prize had that authorized player not participated.

9.4 Registrant shall offer all authorized players information regarding his or her account history and account details;

9.5 Registrant shall ensure authorized players' funds are protected upon deposit and segregated from the operating funds of such operator or registrant and otherwise protected from corporate insolvency, financial risk, or criminal or civil actions against such operator or registrant.

9.5.1 Funds in registrant's authorized players' accounts must either be held in trust for the authorized player in a segregated account or in a special purpose segregated account that is maintained and controlled by a properly constituted corporate entity that is not the registrant and whose governing board includes one or more corporate directors who are independent of the registrant and of any corporation related to or controlled by the registrant. Said corporate entity must require a unanimous vote of all corporate directors to file bankruptcy and must have articles of incorporation that prohibit commingling of funds with those of the registrant except as necessary to reconcile the accounts of authorized players with sums owed by those consumers to the registrant. Said special purpose corporate entity must also be:

9.5.1.1 Restricted from incurring debt other than to authorized players pursuant to the rules that govern their accounts as consumers of interactive daily fantasy sports contests;

9.5.1.2 Restricted from taking on obligations of the registrant other than obligations to authorized players pursuant to the rules that govern their accounts as consumers interactive daily fantasy sports contests; and

9.5.1.3 Prohibited from dissolving, merging or consolidating with another company (other than a special purpose corporate entity established by another registrant that meets the requirements of this section) while there are unsatisfied obligations to authorized players including, without limitation, to registrant consumers.

9.6 Registrant shall implement and prominently publish procedures that:

9.6.1 Prevent unauthorized withdrawals from authorized players' accounts by registrant or others;

9.6.2 Make clear that the funds in the segregated account do not belong to the registrants and are not available to creditors other than authorized players whose funds are being held;

9.6.3 Prevent commingling of funds in the segregated account with other funds including, without limitation, funds of the registrant; and

9.6.4 Establish a protocol by which authorized players can withdraw funds maintained in their accounts, whether such accounts are open or closed. Such requests for withdrawals must be honored by the later of five business days of the request or ten business days of submission of any tax reporting paperwork required by law, unless the registrant believes in good faith that the authorized player engaged in either fraudulent conduct or other conduct that would put the registrant in violation of this regulation, in which case the registrant may decline to honor the request for withdrawal for a reasonable investigatory period until its investigation is resolved if it provides notice of the nature of the investigation to the authorized player. For the purposes of this provision, a request for withdrawal will be considered honored if it is processed by the registrant but delayed by a payment processor, credit card issuer or by the custodian of a financial account.

10 Del. Admin. Code § 301-9.0

21 DE Reg. 499 (12/1/2017) (Final)