SB 445 - This act modifies several provisions relating to fantasy sports.
Several definitions related to fantasy sports are modified. (Section 313.905)
This act also requires that a licensed operator maintain a reserve in the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond, an escrow account, or a combination thereof, in an amount that shall equal or exceed the total balances of the fantasy contest players' accounts.
This act also changes the requirement that any prize won by a registered player from a contest be deposited into the player's account within 48 hours of winning to also allow a prize to be mailed within five business days. A licensed operator may delay such deposit for up to fifteen days if the licensed operator believes in good faith that the registered player engaged in either fraudulent conduct or other conduct that would put the licensed operator in violation of the law so long as the operator provides notice of the nature of the investigation to the player. The Gaming Commission shall establish its own investigation process and issue determinations on a case-by-case basis as to whether the licensed operator is required to deposit the prize in the winner's account. This act provides the right for any person or entity to appeal any such finding, decision, or determination of the Gaming Commission to the Administrative Hearing Commission. (Sections 313.915 and 621.047)
This act limits a license applicant's liability for the cost of the Gaming Commission's investigation into the applicant's employees, officers, directors, trustees, and principal salaried executive staff officers to $10,000 rather than $50,000. The Commission may grant a waiver of all or a portion of the cost of an investigation.
This act also establishes a graduated license renewal fee structure. An operator that made over $2 million in the previous calendar year shall pay a fee of $5,000. An operator that made less than $2 million but more than $1 million shall pay a fee of $2,500. An operator that made less than $1 million but more than $250,000 shall pay a fee of $1,000. An operator that made $250,000 or less shall not be required to pay an annual license renewal fee.
This act also reduces the annual operation fee from 11.5% of the operator's net revenue from the previous calendar year to 6%. The Commission may suspend an operator's license if such operator fails to apply for an annual license renewal or remit the operation fee. (Section 313.935)
This act requires a third-party audit of licensed operators to ensure compliance with the provisions of fantasy gaming law. Operators with net revenues of $250,000 or less in a calendar year shall be exempt from auditing provisions. The Commission may perform an audit of such operators at the Commission's expense. If such audit uncovers evidence of a violation of fantasy gaming laws, the operator shall remit the cost of such audit to the Commission. (Section 313.940)
This act reduces the administrative penalty for violations of fantasy gaming laws from not more than $10,000 to not more than $1,000 per violation, and from not more than $100,000 to not more than $10,000 for violations arising out of the same transaction or occurrence. (Section 313.950)
This act is substantially similar to provisions contained in HCS/HB 502 (2017).