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S.F. No. 3007 - Fantasy Sports Game Definition and Authorization (The First Engrossment)
 
Author: Senator Sandra L. Pappas
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: April 5, 2016



 

Section 1 [Consumer Protection; Fantasy Sports] establishes registration requirements for fantasy game operators who offer games with an entry fee.

Subdivision 1 [Fantasy game operation requirements] requires game operators who offer a fantasy game to a person located in the state with an entry fee to implement commercially reasonable procedures to:

  • prevent employees of the game operator and certain relatives of employees from competing in a game that requires an entry fee and awards a cash prize over $5;

  • prevent sharing of confidential information that could affect fantasy game play;

  • prevent a game operator employee from participating in a fantasy game;

  • verify that a player in a fantasy game with an entry is at least 18 years old;

  • prohibit a person who participates in a game or contest as an individual, part of a team, or official, from participating in a fantasy game that is determined by the accumulated statistical results of the game or contest;

  • prohibit a person from entering a fantasy game upon request of the person;

  • disclose the number of entries in a single fantasy game that a person may submit and prevent players from submitting more than the allowable number;

  • segregate player funds from operational funds; maintain a reserve of a specified amount;

  • prevent a person from using a proxy server to enter the game’s operator’s platform;

  • prohibit use of unauthorized third-party scripts; prohibit a person found to be using such a script from playing in a fantasy game for a year or more;

  • develop and prominently publish procedures for a person to file a complaint with a game operator; and

  • disclose the terms of promotional offers at the time such offers are advertised, and provide full disclosure of limitations of the offer before a person provides financial consideration in exchange for the offer.

Subdivision  2 [Definitions] defines the terms “game operator,” “fantasy game,” and “entry fee” by cross-reference to a section in the Public Safety chapter.                                                                        

Subdivision  3 [Registration] precludes a person from offering a fantasy game to a Minnesota resident without being registered by the commissioner of public safety.

Subdivision  4 [Audits] requires game operators to contract annually with third parties for audits performed according to specified standards.  Requires the audit to be submitted to the commissioner of public safety.

Section 2 [Recovery of Money Lost] precludes recovery of money lost on betting on fantasy sports through a civil lawsuit.

Section 3 [Commitments for Gambling Debt Void] specifies that gambling debts relating to fantasy sports are not void under a statute that voids certain gambling debts.

Section 4 [Fantasy Games] specifies that participating in or operating a fantasy game is not a crime. 

Paragraph (a) defines the terms “entry fee,” “commissioner,” “fantasy game,” “game operator,” and “script.”  A “fantasy game” is a fantasy or simulation sports game or educational game or contest if certain conditions are met, as follows:

  • the value of prizes and awards are disclosed in advance;

  • the operator of the game makes known the value of prizes before the game;

  • results are determined by accumulated statistical results of individuals’ performance; and

  • the outcome is not based on the score, point spread, or performance of a single team or combination of teams or solely on a single performance of an individual athlete or player in a single event.

Paragraph (b) exempts a fantasy game conducted by a registered game operator from laws that make certain activity a crime.

Paragraph (c) specifies that laws prohibiting certain activity do not prohibit a registered game operator from offering a fantasy game.

 

 
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