SS/SCS/HCS/HB 1941 - This act is known as the "Missouri Fantasy Sports Consumer Protection Act". Fantasy sports contests are defined in the act as contests where the value of prizes is made known in advance, winning outcomes reflect relative knowledge of the players and based on accumulated statistical results, not based on the performance of a single team, combination of teams, or athlete in a single event. In addition to authorized websites, this act authorizes fantasy sports contests on, or adjacent to, excursion gambling boats for those over 21.
The Missouri Gaming Commission will provide licensing for websites offering fantasy sports contests in Missouri. The licensed entity must ensure that winning outcomes are determined by accumulated statistical results of fully completed contests and may not allow a player to "auto-draft" without input by the player or choose a pre-selected team. Licensed operators shall not offer prizes or awards to athletes and shall not offer contests based on performance of collegiate, high school, or youth athletes.
Licensed operators are subject to various operating requirements, including:
• financial restrictions like preventing unauthorized withdrawals or commingling of funds;
• providing procedures for a player to report compromised accounts;
• taking reasonable steps to prevent minors (under 18) from registering;
• monitor use of unauthorized computer programs by players;
• clearly identify players that are highly experienced - defined in that act as participating in 1,000 or more contests or winning 3 or more prizes valued over $1,000;
• offer contests excluding highly experienced players and only open to beginner players;
• maintaining and enforcing self-exclusion lists; and
• restrictions on advertising.
Licensed operators may not issue credit to players. Persons associated with licensed operations may not disclose proprietary or nonpublic information to individuals who are eligible to participate in fantasy sports games.
Fantasy sports contest operators are required to apply for a license annually. The annual license fee is the lower of $10,000 or 10% of the applicant's net revenue from the previous calendar year. Licensed operators must pay an annual operation fee equal to 11.5% of the operator's net revenue from the previous calendar year. For purposes of the act, net revenue is based on the total amount of entry fees collected, less prizes paid out, and multiplied by a percentage based on entry fees collected in Missouri in relation to total entry fees collected.
The commission may conduct an investigation of those employed by or associated with operating fantasy sports contests at the operator's expense. Licensed operators must also conduct an annual independent audit to ensure compliance with this act at their expense.
Documents and information provided to the commission are closed records, but certain information must be disclosed to the public based on a written request. The commission shall oversee all licensed operators and has certain investigatory, licensing, and rule-making powers under this act.
This act is similar to SB 1131 (2016) & SB 1045 (2016).