N.Y. PML Law § 1404 — New York Code / Act PML / Article 14 / Section 1404
Required safeguards, minimum standards
Status: in_force

§ 1404. Required safeguards, minimum standards. 1. As a condition of\nregistration in New York state, each operator and registrant shall\nimplement the following measures:\n  (a) limit each authorized player to one active and continuously used\naccount, and prevent prohibited players from maintaining accounts or\nparticipating in any contest offered by such operator or registrant;\n  (b) prohibit minors from participating in any contest, which includes:\n  (i) if a registrant becomes or is made aware that a minor has\nparticipated in one of its contests, such registrant shall promptly,\nwithin no more than two business days, refund any deposit received from\nthe minor, whether or not the minor has engaged in or attempted to\nengage in a contest; provided, however, that any refund may be offset by\nany prizes already awarded;\n  (ii) each registrant shall publish and facilitate parental control\nprocedures to allow parents or guardians to exclude minors from access\nto any contest or platform. Such procedures shall include a toll-free\nnumber to call for help in establishing such parental controls; and\n  (iii) each registrant shall take appropriate steps to confirm that an\nindividual opening an account is not a minor.\n  (c) when referencing the chances or likelihood of winning in\nadvertisements or upon contest entry, make clear and conspicuous\nstatements that are not inaccurate or misleading concerning the chances\nof winning and the number of winners;\n  (d) enable authorized players to exclude themselves from contests and\ntake reasonable steps to prevent such players from entering a contest\nfrom which they have excluded themselves;\n  (e) permit any authorized player to permanently close an account\nregistered to such player, on any and all platforms supported by such\noperator or registrant, at any time and for any reason;\n  (f) offer introductory procedures for authorized players, that shall\nbe prominently displayed on the main page of such operator or\nregistrant's platform, that explain contest play and how to identify a\nhighly experienced player;\n  (g) identify all highly experienced players in any contest by a symbol\nattached to such players' usernames, or by other easily visible means,\non all platforms supported by such operator or registrant;\n  (h) disclose the number of entries a single authorized player may\nsubmit to each contest;\n  (i) disclose the maximum number of total entries allowed for each\ncontest;\n  (j) implement measures to protect the privacy and online security of\nauthorized players and their accounts;\n  (k) offer all authorized players access to his or her account history\nand account details;\n  (l) ensure authorized players' funds are protected upon deposit and\nsegregated from the operating funds of such operator or registrant and\notherwise protected from corporate insolvency, financial risk, or\ncriminal or civil actions against such operator or registrant;\n  (m) list on each website, in a prominent place, information concerning\nassistance for compulsive play in New York state, including a toll-free\nnumber directing callers to reputable resources containing further\ninformation, which shall be free of charge;\n  (n) ensure the value of any prizes and awards offered to authorized\nplayers shall be established and made known to such players in advance\nof the contest, and such value shall not be determined by the number of\nauthorized players or the amount of any entry fees paid by such players;\n  (o) ensure all winning outcomes reflect the relative knowledge and\nskill of the authorized players and shall be determined predominantly by\naccumulated statistical results of the performance of individuals in\nsports events;\n  (p) ensure no winning outcome shall be based on the score, point\nspread, or performance of a single sports team, or any combination of\nsuch teams;\n  (q) ensure no winning outcome shall be based solely on any single\nperformance of an individual athlete in a single sport or athletic\nevent; and\n  (r) ensure no game or contest shall be based on a prohibited sports\nevent.\n  2. Each registrant shall restrict the number of entries submitted by a\nsingle authorized player for any contest to a maximum of one hundred\nfifty entries per player per contest, or a maximum of three percent of\nthe total number of entries by all players for any contest, whichever is\nless, or as determined by the commission. Registrants shall take\nreasonable steps to prevent authorized players from submitting more than\nthe allowable number of entries per contest. The commission shall\npromulgate regulations to further effectuate this subdivision to ensure\nthat the number of entries submitted by a single authorized player for\nany contest will lead to a fair and equitable distribution of number of\nentries.\n  3. (a) Operators shall not directly or indirectly operate, promote, or\nadvertise any platform or contest to persons located in New York state\nunless registered pursuant to this article.\n  (b) Unless otherwise approved by regulation of the commission,\noperators and registrants shall not directly or indirectly promote or\nadvertise any online fantasy or simulation sports games or contests with\nan entry fee during the conduct of any online fantasy or simulation\nsports games or contests without an entry fee. This paragraph shall not\napply to any operator or registrant that prohibits prohibited players\nfrom participating in online fantasy or simulation sports games or\ncontests without an entry fee.\n  4. Registrants shall not offer any contest based on any prohibited\nsports event.\n  5. Registrants shall not permit any minor or prohibited participant to\nenter any contest.\n  6. Advertisements for contests and prizes offered by a registrant\nshall not target prohibited participants, minors, or self-excluded\npersons.  Representations or implications about average winnings from\ncontests shall not be unfair or misleading. Such representations shall\ninclude, at a minimum:\n  (a) the median and mean net winnings of all authorized players\nparticipating in contests offered by such registrant; and\n  (b) the percentage of winnings awarded by the registrant to highly\nexperienced players participating in contests offered by such registrant\nwithin the preceding calendar year.\n  7. Registrants shall prohibit the use of third-party scripts or\nscripting programs for any contest and ensure that measures are in place\nto deter, detect and, to the extent reasonably possible, prevent\ncheating, including collusion, and the use of cheating devices,\nincluding use of software programs that submit entry fees or adjust the\nathletes selected by an authorized player.\n  8. Operators and registrants shall develop and prominently display\nprocedures on the main page of such operator's or registrant's platform\nfor the filing of a complaint by the authorized player against such\nregistrant. An initial response shall be given by such registrant to\nsuch player filing the complaint within forty-eight hours. A complete\nresponse shall be given by such registrant to such player filing the\ncomplaint within ten business days. An authorized player may file a\ncomplaint alleging a violation of the provisions of this article with\nthe commission.\n  9. Registrants shall maintain records of all accounts belonging to\nauthorized players and retain such records for five years from the date\nan account was created.\n