205 CMR, § 247.06

Current through Register 1533, October 25, 2024

Section 247.06 - Sports Wagering Tournaments/Contests/Pools

(1) No Sports Wagering tournament, contest, or pool shall be conducted unless the Sports Wagering Operator, before the first time a given type of tournament, contest, or pool is offered, files a written request with the Commission to offer that type of tournament, contest, or pool, and the Commission grants the request.

(2) The request must provide a detailed description of the type of tournament, contest, or pool and must include the rules of the tournament, contest, or pool, the requirements for entry, the entry fees, the rake, and potential payouts. The request must also indicate whether or not the proposed type involves a shared liquidity pool available to patrons in Massachusetts and other jurisdictions with the prize pool comprising entry fees collected from patrons in multiple jurisdictions.

(3) Once a Sports Wagering Operator receives approval to offer a type of tournament, contest, or pool, the Sports Wagering Operator shall not be required to seek additional approvals from the Commission for each subsequent type that has only variations to the size, number of entries permitted, entry fee, or prize structure, or other minor variations as allowed by the Commission.

(4) Each Sports Wagering Operator must maintain a record of each tournament, contest, or pool it offers, which must address, at a minimum, all of the following:

(a) Name or identification of the tournament, contest, or pool;

(b) The date and time the tournament, contest, or pool occurred or will occur (if known);

(c) Relevant Sporting Events and Wager Categories;

(d) Rules concerning play or participation in the tournament, contest, or pool;

(e) For each registered patron:

1. The patron's unique identifier;

2. The amount of entry fees collected from the patron, including any Promotional Gaming Credits, and the date collected;

3. The patron's scorings/rankings; and

4. Any payouts to the patron, including any Promotional Gaming Credits, and the date paid;

(f) Total rake, Commission, or fees collected;

(g) Funding source amount or amounts comprising the prize pool, including buy-ins, re-buys, or add-ons;

(h) Prize structure of payouts;

(i) The methodology for determining winner or winners; and

(j) The current status of the tournament, contest, or pool.

(5) The Sports Wagering Operator's rake collected from patrons located within the Commonwealth who enter a tournament, contest, or pool (less any rake adjustment, if applicable), is Sports Wagering revenue subject to all taxes and tax requirements outlined in 205 CMR 240: Sports Wagering Revenue Tax Remittance and Reporting, and:

(a) At no time shall the calculation resulting from a rake or rake adjustment be negative; and

(b) For a tournament, contest, or pool which utilizes shared liquidity available to patrons in Massachusetts and other jurisdictions, the rake rate must be the same for all jurisdictions participating.

(6) All Breaks from each prize pool must be transferred to the Sports Wagering Control Fund in accordance with M.G.L. c. 23N, § 15(a).