La. Admin. Code tit. 42 § VII-501

Current through Register Vol. 50, No. 11, November 20, 2024

Section VII-501 - Fantasy Sports Contest Operator Requirements and Restrictions; Internal Controls

A. Licensees may only conduct fantasy sports contests expressly authorized by the Act, these regulations, or its internal controls.

B. Fantasy sports contests authorized by the Act shall be conducted pursuant to the Act, these regulations, and a licensees internal controls.

C. An applicant shall submit its internal controls with its application for licensing. Licensees shall submit updated internal controls to ensure the division is in possession of the licensees current internal controls at all times.

D. Licensees internal controls shall implement commercially reasonable procedures for fantasy sports contests with an entry fee to ensure compliance with all requirements of the Act, these regulations and the following:

1. prohibit participation of a player in fantasy sports contests while the player is located in a prohibited parish;

2. comply with all applicable tax laws and regulations including, without limitation, laws and regulations applicable to winnings and tax withholding to taxing authorities and players;

3. prevent entries into fantasy sports contests as follows:

a. no more than one entry per player in a contest involving 12 or few entries;

b. no more than two entries per player in a contest involving 13 to 36 entries;

c. no more than three entries per player in a contest involving 37 to 99 entries; and

d. no more than the lesser of three percent of all entries or 150 entries in a contest involving one hundred or more entries;

e. notwithstanding Subparagraphs a through d of this Paragraph, a licensee may establish fantasy sports contests in which there are no restrictions on the number of entries if those contests constitute less than two percent of the total number of contests it offers and if the licensee clearly discloses that there are no limits on the number of entries per player and the entry fee is $50 or more per entry;

4. prevent players from participating in a fantasy sports contest where the entry fee is greater than the balance in the players account;

5. prevent employees of the licensee, and relatives of an employee living in the same household as an employee of a licensee, from competing in fantasy sports contests offered by a licensee in which the licensee offers a cash prize to the general public;

6. prevent sharing of confidential information that could affect fantasy sports contests with third parties until the information is made publicly available;

7. that no winning outcome is based on the score, point spread, or any performance of any single real-world sports team or combination of such teams or solely on any single performance of an individual athlete or person engaged in any single real-world sporting event;

8. that the following persons do not participate in fantasy sports contests:

a. athletes and individuals who engage in or officiate a game or competition that is a real-world sport or athletic event that is the subject of a fantasy sports contest; and

b. any sports agent, team employee, referee, or league official associated with a real-world sport or athletic event that is the subject of a fantasy sports contest;

9. verify that a fantasy sports contest player is 21 years of age or older;

10. provide fantasy sports contest players with access to information on responsible play;

11. provide fantasy sports contest players with access to the fantasy sports contest player's play history and account details that are not confidential;

12. allow individuals to restrict themselves from entering a fantasy sports contest upon request and provide reasonable steps to prevent the person entering fantasy sports contests offered by a licensee;

13. segregate fantasy sports contest player funds from operational funds or maintain a reserve that exceeds the amount of player funds on deposit, which may not be used for operational activities. Reserve funds may take the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond, or a combination thereof, in the amount that must exceed the total balances of the fantasy sports contest players' accounts. If a licensee chooses to utilize a special purpose segregated account for the purpose of segregation or reserve funds, it shall submit to the division all information and documentation regarding the account and shall receive approval prior to using the account for such purposes;

14. prohibit the use of unauthorized scripts or scripting programs for any contest that gives an unfair advantage over other players in fantasy sports contests and ensure that commercially reasonable measures are in place to deter, detect, and, to the extent reasonably possible, prevent cheating, collusion, and the use of cheating devices, including unauthorized software programs that submit entry fees or adjust the athletes selected by a player;

15. not offer fantasy sports contests based on the performances of athletes or persons that engage in high school or youth athletic events;

16. not offer a fantasy sports contest to the general public that does not establish and make known all prizes and awards offered to winning players in advance of the game or contest;

17. withhold all winnings from players determined to be under the age of 21 or determined to have participated in a fantasy sports contest from within a prohibited parish;

18. allow players to file complaints regarding the fantasy sports contest operation and the handling of the players fantasy sports contest account;

19. verify the following for players requesting to open an account:

a. identity; and

b. date of birth.

20. publish and facilitate parental control procedures to allow parents or guardians to exclude minors from access to any contest or platform; and

21. determine the geographical location of a player when participating in a fantasy sports contest.

E. Licensees shall report all winnings withheld and remit all withheld amounts to the division quarterly.

F. Licensees shall provide information regarding the players ability to file a complaint with the division, provide the information necessary to file such a compliant, and notify the division of any complaints.

G. Licensees shall ensure that all information required by the Act, these regulations, or its internal controls to be provided to players is easily accessible through the licensees platform, is clear and concise in language, and provides a mean to contact the licensee with questions.

La. Admin. Code tit. 42, § VII-501

Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 47262 (2/1/2021).

AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15, 24, and 304.