SB491: Bill Text

SB491,5,3 (2) Prohibited rule making. The department may not promulgate rules to limit or regulate any of the following:

SB491,5,5 (a) The fantasy contest operator's rules for the administration of an individual fantasy contest.

SB491,5,6 (b) The statistical makeup of the contest.

SB491,5,7 (c) The digital platform used by a fantasy contest operator.

SB491,5,11 570.20 Fantasy contest operator requirements. (1) As a condition of obtaining registration from the department, a fantasy contest operator shall implement commercially reasonable procedures that are intended to do all of the following:

SB491,5,14 (a) Prevent employees of or relatives living in the same household as an employee of a fantasy contest operator from competing in a fantasy contest in which the fantasy contest operator offers a cash prize to the general public.

SB491,5,16 (b) Prohibit the fantasy contest operator from participating in any fantasy contest that he or she offers.

SB491,5,19 (c) Prevent the employees or agents of the fantasy contest operator from sharing confidential information with 3rd parties that could affect fantasy contest play until the information is made publicly available.

SB491,5,23 (d) Ensure that no winning outcome of a fantasy contest is based on the score, point spread, or any performance of any single actual sports team or combination of sports teams or solely on a single performance of an individual athlete or participant in any single actual sporting event.

SB491,5,24 (e) Prohibit all of the following persons from participating in a fantasy contest:

SB491,6,3 1. Athletes or individuals who participate or officiate in a game or competition that is the subject of a fantasy contest based on the sport or competition in which the athletes or individuals participate or are otherwise associated.

SB491,6,5 2. Any sports agent, team employee, referee, or league official associated with a sport or athletic event or competition on which a fantasy contest is based.

SB491,6,6 (f) Verify that a fantasy contest player is 18 years of age or older.

SB491,6,8 (g) Provide fantasy contest players with access to information on responsible play.

SB491,6,10 (h) Provide fantasy contest players with access to information on seeking assistance for compulsive behavior.

SB491,6,12 (i) Provide fantasy contest players with access to their play history and account details.

SB491,6,15 (j) Upon request of an individual, allow the individual to restrict himself or herself from entering a fantasy contest and provide reasonable steps to prevent the individual from entering a fantasy contest offered by the fantasy contest operator.

SB491,6,18 (k) Disclose the number of entries that a fantasy contest player may submit to each fantasy contest and provide reasonable steps to prevent players from submitting more than the allowed number.

SB491,6,24 (L) Segregate fantasy contest player moneys from operational moneys or maintain a reserve that is not used for operational activities and that exceeds the amount of balances in fantasy contest players' aggregate accounts. A fantasy contest operator may keep the reserve moneys in the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond, or a combination of any of these forms.

SB491,7,2 (m) Refrain from offering a fantasy contest based on performances of participants in collegiate, high school, or youth athletic events.

SB491,7,4 (n) Establish and make known all prizes and awards offered to winning fantasy contest players in a fantasy contest in advance of the game or contest.

SB491,7,9 (2) (a) Except as provided in par. (b), a fantasy contest operator shall annually contract with a 3rd party to perform an independent audit consistent with the standards accepted by the American Institute of Certified Public Accountants to confirm compliance with sub. (1) (L). The fantasy contest operator shall submit the results of the independent audit to the department.

SB491,7,14 (b) A fantasy contest operator that has a net revenue of $250,000 or less in a calendar year is not required to comply with par. (a). The department, at its expense, may perform an audit on a fantasy contest operator under this paragraph. If the department's audit finds evidence of a violation of this section, the fantasy contest operator shall reimburse the department for the reasonable cost of the audit.

SB491,7,17 (c) Information submitted by a fantasy contest operator or the results of an audit conducted under this subsection are not subject to public inspection or copying under s. 19.35 (1).

SB491,7,21 570.30 Penalty. A fantasy contest operator or an employee or agent of a fantasy contest operator who knowingly violates this chapter is subject to a forfeiture not to exceed $1,000 for each violation and not to exceed $10,000 cumulatively for violations arising out of the same transaction.

SB491,2 Section 2. 945.01 (1) (b) of the statutes is amended to read:

SB491,8,2 945.01 (1) (b) Offers of purses, prizes or premiums to the actual contestants in any bona fide contest for the determination of skill, speed, strength, or endurance or to the bona fide owners of animals or vehicles entered in such contest , including a fantasy contest under ch. 570, where chance is not the dominant factor controlling the award of the purse, prize, or premium;

SB491,3 Section 3. Nonstatutory provisions.

SB491,8,13 (1) Existing fantasy contest operators. Notwithstanding s. 570.05 (1), a fantasy contest operator that offered fantasy contests to persons located in this state on or before the effective date of this subsection may continue to offer fantasy contests without registration to persons located in this state until 60 days after the date the department of financial institutions first allows members of the public to apply for registration. A fantasy contest operator that applies for registration during the 60-day period may continue to offer fantasy contests without registration while the registration is pending and has not been denied. A fantasy contest operator that has not applied for registration during the 60-day period shall cease offering fantasy contests in this state at the expiration of the 60-day period.

SB491,8,14 (End)