RS 308 - Licensee requirements
A. As a condition of licensure, a fantasy sports contest operator shall submit evidence to the board that the operator has established and will implement commercially reasonable procedures for fantasy sports contests with an entry fee and that:
(1) Prevent employees of the fantasy sports contest operator, and relatives of an employee living in the same household as an employee of an operator, from competing in fantasy sports contests offered by an operator in which the operator offers a cash prize to the general public.
(2) Prevent sharing of confidential information that could affect fantasy sports contests with third parties until the information is made publicly available.
(3) Provide 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.
(4) Ensure that any of 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.
(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.
(5) Verify that a fantasy sports contest player is twenty-one years of age or older.
(6) Provide fantasy sports contest players with access to information on responsible play.
(7) Provide fantasy sports contest players with access to the fantasy sports contest player's play history and account details that are not confidential.
(8) 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 an operator.
(9) 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 process 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.
B. A fantasy sports contest operator shall not offer fantasy sports contests based on the performances of athletes or persons that engage in high school or youth athletic events.
C. A fantasy sports contest operator shall not offer a fantasy sports contest to the general public that does not establish and make known all prizes and awards offered to winning participants in advance of the game or contest.
D. A licensed fantasy sports contest operator shall:
(1) Annually contract with a certified public accountant to conduct an independent audit that is consistent with the standards accepted by the American Institute of Certified Public Accountants.
(2) Submit to the board a copy of the audit report.
(3) Submit financial reports as required by R.S. 27:310.
Acts 2020, No. 141, §1, eff. June 9, 2020; Acts 2020, 2nd Ex. Sess., No. 44, §1, eff. Oct. 28, 2020.