Current through 2024 Legislative Session Act Chapter 531
Section 4865 - Required safeguards; minimum standards(a) As a condition of registration, each operator and registrant shall implement commercially reasonable measures to: (1) Limit each authorized player to 1 active and continuously used account, .(2) Prohibit minors from participating in any contest, which includes:a. If a registrant becomes or is made aware that a minor has participated in one of its contests, such registrant shall promptly, within no more than two business days, refund any deposit received from the minor, whether or not the minor has engaged in or attempted to engage in a contest; provided, however, that any refund may be offset by any prizes already awarded;b. Each registrant shall publish and facilitate parental control procedures to allow parents or guardians to exclude minors from access to any contest or platform; andc. Each registrant shall take appropriate steps to confirm that an individual opening an account is not a minor.(3) Prohibit employees of the registrant and any family members living in the same household as those employees from competing in a public interactive sports contest.(4) Prohibit individuals who participate or officiate in a sports event that is the subject of a fantasy contest from entering an interactive fantasy sports contest that is determined, in whole or in part, on the accumulated statistical results of the sports event in which the individual is participating or officiating.(5) When referencing the chances or likelihood of winning in advertisements or upon contest entry, make clear and conspicuous statements that are not inaccurate or misleading concerning the chances of winning and the number of winners.(6) Enable authorized players to exclude themselves from contests and take reasonable steps to prevent such players from entering a contest from which they have excluded themselves.(7) 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.(8) Offer introductory procedures for authorized players that explain contest play and how to identify a highly experienced player.(9) Identify all highly experienced players in any contest by a symbol attached to such players' usernames, or by other easily visible means, on all platforms supported by such operator or registrant.(10) Disclose the number of entries that a single authorized player may submit to each contest.(11) Disclose the maximum number of total entries allowed for each contest.(12) Implement measures to protect the privacy and online security of authorized players and their accounts.(13) Offer all authorized players information regarding his or her account history and account details;(14) 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.(15) List on each website, in a prominent place, information concerning assistance for compulsive play, including a toll-free number directing callers to reputable resources containing further information, which shall be free of charge.(16) Ensure the value of any prizes and awards offered to authorized players shall be established and made known to such players in advance of the contest.(17) Ensure all winning outcomes reflect the relative knowledge and skill of the authorized players and shall be determined predominantly by accumulated statistical results of the performances of individuals in sports events.(18) Ensure no winning outcome shall be based on the score, point spread, or performance of a single actual sports team, or any combination of such teams.(19) Ensure no winning outcome shall be based solely on any single performance of an individual athlete in a single sport or athletic event.(20) Ensure no game or contest shall be based on a prohibited sports event.(21) Prevent the sharing of confidential information that could affect interactive fantasy sports contest play with third parties until such information is made publicly available.(b) Each registrant shall restrict the number of entries submitted to one entry by a single authorized player for a contest involving 12 entries or fewer. Each registrant shall restrict the number of entries submitted by a single authorized player to two entries for a contest involving 13-36 entries. Each registrant shall restrict the number of entries submitted by a single authorized player to three entries for a contest involving 37-100 entries. In any contest involving more than 100 entries, registrants shall restrict the number of entries submitted by a single authorized player to 3% of all entries or 150 entries, whichever is smaller.(c) For all advertised contests, the registrant shall prominently include information about the maximum number of entries that may be submitted by a single authorized player for that contest.(d) Registrants may establish contests, representing less than 2% of the total number of contests it offers, in which there is no restriction on the number of entries by a single authorized player, provided that (i) the registrant clearly discloses that there are no limits on the number of entries by a single authorized player, and (ii) that the cost of participating in a contest with no restriction on the number of entries by a single authorized player is $50 or more per entry.(e) Operators shall not directly or indirectly operate, promote or advertise any platform or contest to persons located in this state, unless such operation, promotion or advertising is pursuant to this subchapter (f) Registrants shall not offer any contest based on any prohibited sports event.(g) Registrants shall not permit any minor to enter any contest.(h) Advertisements for contests and prizes offered by a registrant shall not target minors, or self-excluded persons. Representations or implications about average winnings from contests shall not be unfair or misleading. Such representations shall include, at a minimum:(1) The median and mean net winnings of all authorized players participating in contests offered by such registrant; and(2) The percentage of winnings awarded by the registrant to highly experienced players participating in contests offered by such registrant within the preceding calendar year.(i) Registrants shall prohibit the use of third-party scripts or scripting programs for any contest and ensure that measures are in place to deter, detect and, to the extent reasonably possible, prevent cheating, including collusion, and use of cheating devices, including use of third party software programs that submit entry fees or adjust the athletes selected by an authorized player.(j) Operators and registrants shall develop and prominently display procedures for the filing of a complaint by the authorized player against such registrant. An initial response shall be given by such registrant to such player filing the complaint within forty-eight hours. A complete response shall be given by such registrant to such player filing the complaint within ten business days. An authorized player may file a complaint alleging a violation of the provisions of this subchapter with the Director.(k) Registrants shall maintain records of all accounts belonging to authorized players and retain such records for five years.Amended by Laws 2019, ch. 69,s 1, eff. 6/26/2019.Amended by Laws 2017, ch. 371,s 1, eff. 8/10/2018.Added by Laws 2017, ch. 105,s 1, eff. 8/25/2017.