SB 1131 - This act is known as the "Missouri Daily Fantasy Sports Consumer Protection Act." Daily fantasy sports games are defined in the act as games of any duration where a player competes against other players or a target score as the manager of an imaginary team of athletes, uses statistics from real-world sporting events, plays for a predetermined prize, and pays a charge or fee to participate.
Under this act the Missouri Gaming Commission will provide licenses for the operation of websites engaged in daily fantasy sports games in Missouri. The licensed entity must ensure that the website does not allow a simulated sports team to be based on the current membership of a professional or amateur sports team, that prizes are made known to competitors before the contest, that the value of a prize is not based on the amount of players or the amount of fees contributed by players, and that the winning outcome is not based on score, point spread, or performance of a single team or based solely on performance of an individual athlete in a single sporting event.
Licensed operators must hold amounts for their players in trust and must post procedures on their website that will prevent unauthorized withdrawals or commingling of the funds and provide procedures for a player to report a compromised account. Licensed operators may not issue credit to players and may not allow multiple accounts for one player.
Licensed operators shall verify players' states of residence and that players are over 21 - the legal age of participation in Missouri. Licensed operators shall maintain and enforce lists of disassociated persons and exclusion lists. Licensed operators are subject to advertising restrictions.
Persons associated with licensed operations may not disclose proprietary or nonpublic information to individuals who are eligible to participate in fantasy sports games. Licensed operators shall withhold an amount equal to 4% of prizes over $1,200 paid out to players in Missouri for income tax purposes.
A person or entity wishing to operate an authorized website under this section must provide a bond to the state treasurer in an amount equal to $50,000 or $15,000 per person that will be investigated, whichever is greater. The first year's license lasts for a period of one year, subsequent licenses last for 4 years. The annual fee for licensed operators shall be at least $25,000 payable to the Gaming Commission Fund.
Licensed operators are subject to a tax equal to 21% on all adjusted gross receipts received from Missouri residents. This amount must be paid monthly and will be placed in the Fantasy Sports Fund. The Fantasy Sports Fund shall be used solely for funding Missouri public schools. Licensed operators must conduct and pay for an annual independent audit to ensure compliance with this act.
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 changes definitions under the criminal code to include operating an unlicensed daily fantasy sports game under the definition of "advance gambling activity". The definition of "gambling" will now include participating in an unlicensed daily fantasy sports game.
This act is similar to HB 1941 (2016) and SB 1045 (2016).