N.Y. Comp. Codes R. & Regs. tit. 9 § 5604.1

Current through Register Vol. 46, No. 53, December 31, 2024

Section 5604.1 - Prevention of play by prohibited persons

(a)Participation prohibited. A prohibited player, as defined by Racing, Pari-Mutuel Wagering and Breeding Law section 1401(14), shall not participate in an approved interactive fantasy sports contest.

(b)Operator procedures to prevent prohibited play. A registrant shall submit for commission approval procedures to prevent prohibited players from participating in approved interactive fantasy sports contests. A registrant shall implement any changes to such procedures as the commission may direct at any time. Such plan shall include the following, in regard to prevention of play by a minor:

(1) specification of parental controls procedures to allow parents and guardians to exclude persons under the age of 18 from participating in an interactive fantasy sports contest. The registrant shall explain what information is made available about the specific steps a parent or guardian may take to implement parental controls, including the toll-free number that the registrant provides for individuals seeking help in establishing such parental controls, or other means of communication for such purpose that the commission may approve;

(2) detailed explanation of the steps taken to prevent persons under the age of 18 from entering a contest via the registrant's platform. The registrant shall explain what types of native or third-party age verification procedures are implemented to verify that each person registering for an account with such registrant's platform is not under the age of 18;

(3) procedures used to identify and deactivate accounts created or used by persons under the age of 18 and to exclude such persons from all contests offered through such registrant's platforms;

(4) verification that any deposit made by a person under the age of 18 shall be refunded, less any prizes already awarded, within no more than two business days of discovery, pursuant to Racing, Pari-Mutuel Wagering and Breeding Law section 1404(1)(b)(i). The registrant shall also explain how deposits will be refunded; and

(5) procedures to ensure that persons under the age of 18 do not receive promotional materials that relate to interactive fantasy sports.

(c)Required terms of use. A registrant shall specify in the terms of use applicable to such registrant's platform or such registrant's contest rules that each class of individuals identified in Racing, Pari-Mutuel Wagering and Breeding Law section 1401(14) is prohibited from entering contests in which a contestant is required to pay an entry fee.

(d)Operator liability for violations. A registrant shall be strictly liable for permitting any prohibited player, as defined by Racing, Pari-Mutuel Wagering and Breeding Law section 1401(14), to enter a contest that such registrant conducts. The commission shall consider, however, before imposing any penalty or sanction upon a registrant for a violation of this section, other than a mandatory penalty set forth in subdivision (e) of this section, any circumstances that such registrant presents in writing to the commission as mitigating factors for the commission's consideration, including, without limitation, good-faith reliance on false or misleading information provided by the prohibited person and good-faith compliance with appropriate internal controls designed to prevent play by a prohibited person.

(e)Mandatory sanctions for allowing play by minors. The commission shall penalize a registrant found to have violated Racing, Pari-Mutuel Wagering and Breeding Law section 1404(1)(b), unless such registrant has complied fully and in good faith with adequate age verification procedures approved pursuant to subdivision (b) of this section, as follows:

(1) for a first violation, a fine of $5,000 or the amount accepted as an entry fee from a minor in a contest, whichever is greater;

(2) for a second violation within one year of a violation, a fine of $20,000 or the amount accepted as an entry fee from a minor in a contest, whichever is greater;

(3) for a third violation within one year of a violation, a fine of $25,000; and

(4) for a fourth violation or subsequent violation within one year of a violation, a fine of $25,000 and such further action as the commission may deem appropriate, which may include, without limitation, the suspension or revocation of registration.

(f)Reporting to commission. A registrant shall submit to the commission a list of such registrant's members, officers, employees and agents. A registrant shall provide an updated submission to the commission, after the initial submission, that reflects additions and deletions to the personnel roster within five business days of such personnel change. The commission shall maintain such list and transmit the information in a manner to be determined by the commission.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 5604.1

Adopted New York State Register October 18, 2023/Volume XLV, Issue 42, eff. 10/18/2023