Md. Code Regs. 36.09.04.01

Current through Register Vol. 51, No. 22, November 1, 2024

Section 36.09.04.01 - Financial Account Protections

A. A fantasy competition operator shall hold a fantasy competition player's funds:

(1) In a segregated account that separates player funds from the operational funds of the operator; or

(2) In a special-purpose, segregated account that is maintained and controlled by a properly constituted corporate entity that:

(a) Is not the fantasy competition operator;

(b) Has a governing board that includes one or more corporate directors who are independent of the operator and of any corporation related to or controlled by the operator;

(c) Requires a unanimous vote of all corporate directors to file for bankruptcy;

(d) Has articles of incorporation that prohibit commingling of fantasy competition player funds with those of the fantasy competition operator, except as necessary to reconcile the accounts of fantasy competition players with sums owed to the fantasy competition operator by those fantasy competition players;

(e) Is restricted from incurring debt other than to fantasy competition players pursuant to the fantasy competition operator's rules governing the accounts of its fantasy competition players;

(f) Is restricted from taking on obligations of the fantasy competition operator other than obligations to its fantasy competition players pursuant to the fantasy competition operator's rules governing the accounts of its fantasy competition players; and

(g) Other than a special purpose corporate entity established by another fantasy competition operator that meets the requirements of this subtitle, may not dissolve, merge, or consolidate with another company while there are unsatisfied obligations to fantasy competition players.

B. A fantasy competition operator shall comply with all applicable State and federal requirements for data security.

Md. Code Regs. 36.09.04.01

Regulation .01 recodified and amended from 36.09.01.11 effective 49:3 Md. R.137, eff. 12/16/2021; amended and recodified from 36.09.01.11 effective 49:11 Md. R. 610, eff. 5/30/2022