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 with an entry fee to a person located in the state to implement commercially reasonable procedures to:
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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;
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prevent sharing of gaming information that could affect fantasy game play;
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prevent a game operator employee from participating in a fantasy game;
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verify that a player in a fantasy game with an entry is at least 18 years old;
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prohibit a person who participates in a game or contest as a player or official from participating in a fantasy game that is determined by the accumulated statistical results of the game or contest;
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make information available about resources for compulsive behavior;
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provide ways for a person to restrict their own ability to enter a fantasy game;
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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;
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segregate player funds from operational funds and maintain a reserve of a specified amount;
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offer access to a player’s play history;
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offer access to account details;
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prevent a person from using a proxy server to enter the game’s operator’s platform;
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prominently publish rules governing each fantasy game;
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prohibit use of third-party scripts; prohibit a person found to be using such a script from playing in a fantasy game for a year or more;
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develop and prominently publish procedures for a person to file a complaint with a game operator; and
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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. Defines “script.”
Subdivision 3 [Registration] requires a game operator to register annually with the Department of Public Safety. Permits the commissioner to charge an annual registration fee of $500. The fees are deposited in a special revenue account and appropriated to the commissioner.
Subdivision 4 [Audits] requires a game operator 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.
Subdivision 5 [Civil remedies] authorizes a person who is injured by a violation of this section to bring a civil action to recover damages, costs, and disbursements and to obtain other equitable relief.
Subdivision 6 [Criminal penalty] makes a knowing violation of this section a gross misdemeanor.
Subdivision 7 [Investigations and powers] permits the commissioner of public safety to designate employees to investigate and arrest a person suspected of violating this section and to conduct searches and seizures. Requires that employees authorized to make an arrest must be licensed as a peace officer. Specifies that this section does not limit the division’s authority to exercise powers specified under chapters relating to pari-mutuel horse racing, gambling enforcement, liquor control, lawful gambling, or the lottery.
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 specifies that participating in or operating a fantasy game is not a crime.
Subdivision 7 [Fantasy games]
Paragraph (a) defines the terms “entry fee,” “fantasy game,” and “game operator.” A “fantasy game” is a fantasy sports game if certain conditions are met, as follows:
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the value of prizes and awards are disclosed in advance;
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the operator of the game makes known the value of prizes before the game;
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results are determined by accumulated statistical results of individuals’ performance; and
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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;
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the result of a fantasy game is not based on any athlete participating on a team sponsored by a secondary or postsecondary school.
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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