Source: https://www.gambling-law-us.com/montana/gambling-laws/
Timestamp: 2020-01-19 02:46:00
Document Index: 172052951

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Montana Gambling Laws | Gambling Law US
Gambling in Montana doesn’t follow the patterns that can be observed in most other US states. The Treasure State has signed gaming compacts with the local Indian tribes, but most of the action happens in local bars and other liquor-serving establishments. This is because such venues are allowed to obtain cheap gambling licenses that allow them to offer a limited number of video gaming terminals and card games. Both Montana residents and lawmakers seem perfectly happy with this state of affairs, and there are currently no serious legal efforts to change the status quo.
Online gambling was banned in Montana in 2005 when the definition of illegal gambling was updated to avoid loopholes that could be exploited by offshore iGaming operators, who tend to function in a legal grey area in states that haven’t introduced dedicated online gaming regulations.
The current definition of illegal internet gambling is as follows: “Internet gambling, by whatever name known, includes but is not limited to the conduct of any legal or illegal gambling enterprise through the use of communications technology that allows a person using money, paper checks, electronic checks, electronic transfers of money, credit cards, debit cards, or any other instrumentality to transmit to a computer information to assist in the placing of a bet or wager and corresponding information related to the display of the game, game outcomes, or other similar information.”
Gambling in Montana is covered by Montana Code sections 23-5-110 et seq. and 23-4-101 et seq. The minimum gambling age is 18, but children under the age of 18 are allowed to participate in raffles conducted by churches, schools, and charity organizations.
23-5-112. Definitions.
Unless the context requires otherwise, the following definitions apply to parts 1 through 8 of this chapter:
(7) “Bingo session” means all activities incidental to a series of bingo games conducted by a licensed operator beginning when the first bingo ball is drawn in the first game of bingo.
(8) “Card game table” or “table” means a live card game table:
(9) “Card game tournament” means a gambling activity for which a permit has been issued involving participants who pay valuable consideration for the opportunity to compete against each other in a series of live card games conducted over a designated period of time.
(10) “Dealer” means a person with a dealer’s license issued under part 3 of this chapter.
(11) “Department” means the department of justice.
(12) “Distributor” means a person who:
(a) purchases or obtains from a licensed manufacturer, distributor, route operator, or operator equipment of any kind for use in gambling activities; and
(b) sells the equipment to a licensed manufacturer, distributor, route operator, or operator.
(a) “Gambling” or “gambling activity” means risking any money, credit, deposit, check, property, or other thing of value for a gain that is contingent in whole or in part upon lot, chance, or the operation of a gambling device or gambling enterprise.
(14) “Gambling device” means a mechanical, electromechanical, or electronic device, machine, slot machine, instrument, apparatus, contrivance, scheme, or system used or intended for use in any gambling activity.
(15) “Gambling enterprise” means an activity, scheme, or agreement or an attempted activity, scheme, or agreement to provide gambling or a gambling device to the public.
(a) “Gift enterprise” means a gambling activity in which persons have qualified to obtain property to be awarded by purchasing or agreeing to purchase goods or services.
(17) “Gross proceeds” means gross revenue received less prizes paid out.
(19) “Illegal gambling device” means a gambling device not specifically authorized by statute or by the rules of the department. The term includes:
(a) a ticket or card, by whatever name known, containing concealed numbers or symbols that may match numbers or symbols designated in advance as prize winners, including a pull tab, punchboard, push card, tip board, pickle ticket, break-open, or jar game, except for one used under Title 23, chapter 7, under part 5 of this chapter, in a bingo game approved by the department under part 4 of this chapter, or in a promotional game of chance approved by the department; and
(20) “Illegal gambling enterprise” means a gambling enterprise that violates or is not specifically authorized by a statute or a rule of the department. The term includes:
(a) “Internet gambling”, by whatever name known, includes but is not limited to the conduct of any legal or illegal gambling enterprise through the use of communications technology that allows a person using money, paper checks, electronic checks, electronic transfers of money, credit cards, debit cards, or any other instrumentality to transmit to a computer information to assist in the placing of a bet or wager and corresponding information related to the display of the game, game outcomes, or other similar information.
(22) “Keno” means a game of chance in which prizes are awarded using a card with 8 horizontal rows and 10 columns on which a player may pick up to 10 numbers. A keno caller, using authorized equipment, shall select at random at least 20 numbers out of numbers between 1 and 80, inclusive.
(23) “Keno caller” means a person 18 years of age or older who, using authorized equipment, announces the order of the numbers drawn in live keno.
(24) “License” means a license for an operator, dealer, card room contractor, manufacturer of devices not legal in Montana, sports tab game seller, manufacturer of electronic live bingo or keno equipment, other manufacturer, distributor, or route operator that is issued to a person by the department.
(25) “Licensee” means a person who has received a license from the department.
(26) “Live card game” or “card game” means a card game that is played in public between persons on the premises of a licensed gambling operator or in a senior citizen center.
(a) “Lottery” means a scheme, by whatever name known, for the disposal or distribution of property among persons who have paid or promised to pay valuable consideration for the chance of obtaining the property or a portion of it or for a share or interest in the property upon an agreement, understanding, or expectation that it is to be distributed or disposed of by lot or chance.
(28) “Manufacturer” means a person who:
(a) assembles from raw materials or subparts a completed piece of equipment or pieces of equipment of any kind to be used as a gambling device and who sells the equipment directly to a licensed distributor, route operator, or operator;
(b) possesses gambling devices or components of gambling devices for the purpose of testing them; or
(c) purchases gambling devices or components from licensed manufacturers, distributors, route operators, or operators as trade-ins or to refurbish, rebuild, or repair to sell to licensed manufacturers, distributors, route operators, or operators.
(30) “Operator” means a person who purchases, receives, or acquires, by lease or otherwise, and operates or controls for use in public a gambling device or gambling enterprise authorized under parts 1 through 8 of this chapter.
(31) “Permit” means approval from the department to make available for public play a gambling device or gambling enterprise approved by the department pursuant to parts 1 through 8 of this chapter.
(32) “Person” or “persons” means both natural and artificial persons and all partnerships, corporations, associations, clubs, fraternal orders, and societies, including religious and charitable organizations.
(33) “Premises” means the physical building or property within or upon which a licensed gambling activity occurs, as stated on an operator’s license application and approved by the department.
(34) “Promotional game of chance” means a scheme, by whatever name known, for the disposal or distribution of property among persons who have not paid or are not expected to pay any valuable consideration or who have not purchased or are not expected to purchase any goods or services for a chance to obtain the property, a portion of it, or a share in it. The property is disposed of or distributed by simulating a gambling enterprise authorized by parts 1 through 8 of this chapter or by operating a device or enterprise approved by the department that was manufactured or intended for use for purposes other than gambling.
(35) “Public gambling” means gambling conducted in:
(36) “Raffle” means a form of lottery in which each participant pays valuable consideration for a ticket to become eligible to win a prize. Winners must be determined by a random selection process approved by department rule.
(37) “Route operator” means a person who:
(c) may sell to a licensed operator equipment that had previously been authorized to be operated on a premises and may sell gambling equipment to a distributor or manufacturer.
(38) “Senior citizen center” means a facility operated by a nonprofit or governmental organization that provides services to senior citizens in the form of daytime or evening educational or recreational activities and does not provide living accommodations to senior citizens. Services qualifying under this definition must be recognized in the state plan on aging adopted by the department of public health and human services.
(a) “Slot machine” means a mechanical, electrical, electronic, or other gambling device, contrivance, or machine that, upon insertion of a coin, currency, token, credit card, or similar object or upon payment of any valuable consideration, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the gambling device to receive cash, premiums, merchandise, tokens, or anything of value, whether the payoff is made automatically from the machine or in any other manner.
(40) “Video gambling machine” is a gambling device specifically authorized by part 6 of this chapter and the rules of the department.
23-5-115. Powers and duties of department — licensing. (1) The department shall administer the provisions of parts 1 through 8 of this chapter.
(2) The department shall adopt rules to administer and implement parts 1 through 8 of this chapter.
(3) The department shall provide licensing procedures, prescribe necessary application forms, and grant or deny license applications.
(4) The department shall, as a prerequisite to the issuance of a license pursuant to the authority contained in this chapter, require the applicant to submit fingerprints for the purpose of a criminal background investigation by the department and the federal bureau of investigation.
(5) The applicant shall sign a release of information to the department and is responsible to the department for the payment of all fees associated with the criminal background check.
(6) The department shall prescribe recordkeeping requirements for licensees, provide a procedure for inspection of records, provide a method for collection of taxes, and establish penalties for the delinquent reporting and payment of required taxes.
(7) The department may suspend, revoke, deny, or place a condition on a license issued under parts 1 through 8 of this chapter.
(8) The department may not make public or otherwise disclose confidential criminal justice information, as defined in 44-5-103, information obtained in the tax reporting processes, personal information protected by an individual privacy interest, or trade secrets, as defined in 30-14-402, specifically identified and for which there are reasonable grounds of privilege asserted by the party claiming the privilege.
(9) The department shall assess, collect, and disburse any fees, taxes, or charges authorized under parts 1 through 8 of this chapter.
23-5-119. Appropriate alcoholic beverage license for certain gambling activities. (1) Except as provided in subsection (3), to be eligible to offer gambling under Title 23, chapter 5, part 3, 5, or 6, an applicant must own in the applicant’s name:
(a) a retail all-beverages license issued under 16-4-201, but the owner of a license transferred after July 1, 2007, to a quota area pursuant to a department-conducted lottery under 16-4-204(1)(a) is not eligible to offer gambling; (b) except as provided in subsection (1)(c), a license issued prior to October 1, 1997, under 16-4-105, authorizing the sale of beer and wine for consumption on the licensed premises; (c) a beer and wine license issued in an area outside of an incorporated city or town as provided in 16-4-105(1)(e). The owner of the license whose premises are situated outside of an incorporated city or town may offer gambling, regardless of when the license was issued, if the owner and premises qualify under Title 23, chapter 5, part 3, 5, or 6.
(d) a retail beer and wine license issued under 16-4-109; (e) a retail all-beverages license issued under 16-4-202; or (f) a retail all-beverages license issued under 16-4-208.
(3) Lessees of retail all-beverages licenses issued under 16-4-208 or beer and wine licenses issued under 16-4-109 who have applied for and been granted a gambling operator’s license under 23-5-177 are eligible to offer and may be granted permits for gambling authorized under Title 23, chapter 5, part 3, 5, or 6.
(4) A license transferee or a qualified purchaser operating pending final approval under 16-4-404(6) who has been granted a gambling operator’s license under 23-5-177 may be granted permits for gambling under Title 23, chapter 5, part 3, 5, or 6.
23-5-135. Discharge of defendant. (1) A person against whom a civil action is brought, as provided in 23-5-131, may move to have the action against the person dismissed if the person has repaid to the person who suffered the loss or that person’s dependent the gambling loss, the costs of bringing the civil action, and the exemplary damages agreed upon by the parties or assessed by the court.
(2) A civil action brought to recover gambling losses does not bar or interfere with another proceeding or action, whether criminal, civil, or administrative, that may be brought under the laws of the state.
23-5-152. Possession of illegal gambling device or conducting illegal gambling enterprise prohibited — exceptions. (1) Except as provided in 23-5-153 and subsections (2) through (6) of this section, it is a misdemeanor punishable under 23-5-161 for a person to purposely or knowingly:
(a) have in the person’s possession or under the person’s control or permit to be placed, maintained, or kept in any room, space, enclosure, or building owned, leased, or occupied by or under the person’s management or control an illegal gambling device; or (b) operate an illegal gambling enterprise.
(3) (a) The department may adopt rules to license persons to manufacture gambling devices that are not legal for public play in the state.
(b) A person may not manufacture an illegal gambling device without having obtained a license from the department. The department may charge an administrative fee for the license that is commensurate with the cost of issuing the license.
(4) (a) A person licensed under subsection (3) may conduct only those activities authorized under this subsection (4).
(i) the illegal gambling device contains a component that will be used by the licensee to manufacture an illegal gambling device for export from the state; or (ii) the illegal gambling device will be reconditioned, refurbished, repaired, tested, or otherwise substantially modified in preparation for export from the state; and (iii) the illegal gambling device will be exported from the state; and (iv) the licensee has notified the department and received authorization from the department to bring the illegal gambling device into the state. The licensee is subject to reporting requirements provided for in rules adopted under subsection (3)(a).
(i) the illegal video gambling machine will be reconditioned, refurbished, repaired, or otherwise substantially modified for conversion to an authorized video gambling machine; and (ii) the licensee has notified the department and has received authorization from the department to bring the illegal video gambling machine into the state. The licensee is subject to reporting requirements provided for in rules adopted under subsection (3)(a).
(5) An illegal gambling device may be possessed or located for display purposes only and not for operation:
(a) in a public or private museum; or (b) in any other public place if the device has been made permanently inoperable for purposes of conducting a gambling activity.
(6) An antique illegal gambling device may be possessed by a licensed retail business establishment for purposes of resale and not for operation as provided in 23-5-153.
23-5-155. Counterfeiting or defacing documents — penalty. (1) A person commits the offense of counterfeiting or defacing a document when the person purposely or knowingly counterfeits, alters, or wrongfully displays a seal, decal, license, identification number or device, or other document issued by the department.
(2) A person convicted of the offense of counterfeiting or defacing a document is guilty of a felony and must be punished in accordance with 23-5-162.
23-5-157. Gambling on cash basis — penalties. (1) (a) In every gambling activity, except raffles as authorized in 23-5-413 and card games authorized in part 3 of this chapter and normally scored using points, the consideration paid for the chance to play must be made in cash. A check or debit card may be used to obtain cash to participate in a gambling activity. A participant shall present the cash needed to play the game as the game is being played. If a check or debit card is used to obtain cash on the premises of a licensee then it must be delivered and accepted unconditionally. A licensee or employee of a licensee may not hold a check or other evidence of indebtedness for redemption pending the outcome of a gambling activity.
(i) a check, credit card, or debit card held pending the outcome of a gambling activity; (ii) a loan of any kind at any time from or on behalf of a licensee; (iii) any form of deferred payment, including a note, IOU, post-dated check, hold check, or other evidence of indebtedness; or (iv) a check issued or delivered that is accepted by the licensee with the knowledge that it will not be paid by the depository.
23-5-178. Associated gambling business. (1) The department may adopt rules for the licensing of associated gambling businesses, including but not limited to accounting software vendors and video gambling machine recyclers.
(2) The licensing of an associated gambling business may consider only the legality of the product being sold and the suitability of the owners of the business as provided in 23-5-176.
(3) The annual fee for an associated gambling business license is $100.
23-5-306. Live card game table — permit — fees — disposition of fees. (1) (a) A person who has been granted an operator’s license under 23-5-177 and who holds an appropriate license to sell alcoholic beverages for consumption on the premises, as provided in 23-5-119, may be granted an annual permit for the placement of live card game tables.
(b) A permit is not required for social games played for prizes of minimal value, defined as class I gaming by 25 U.S.C. 2703.
(c) The department may issue an annual permit for the placement of live card game tables to a person operating a premises not licensed to sell alcoholic beverages for consumption on the premises if:
(i) one or more live card game tables were legally operated on the premises on January 15, 1989; (ii) the premises were licensed on January 15, 1989, to sell food, cigarettes, or any other consumable product; (iii) the person has been granted an operator’s license under 23-5-177; and (iv) at the time of application for the permit:
(A) the person has continuously operated a live card game table on the premises since January 15, 1989; and (B) the natural person or persons who own the business operated on the premises are the same as on January 15, 1989.
(2) The annual permit fee in lieu of taxes for each live card game table operated in a licensed operator’s premises may not be prorated and must be:
(a) $250 for the first table; and (b) $500 for each additional table.
(3) The department shall retain for administrative purposes $100 of the fee collected under this part for each live card game table.
(4) The department shall forward on a quarterly basis the remaining balance of the fee collected under subsection (2) to the treasurer of the county or the clerk, finance officer, or treasurer of the city or town in which the live card game table is located for deposit to the county or municipal treasury. A county is not entitled to proceeds from fees assessed on live card game tables located in incorporated cities and towns within the county. The local government portion of this fee is statutorily appropriated to the department, as provided in 17-7-502, for deposit to the county or municipal treasury.
23-5-308. Card game dealers — license. (1) Except as provided in 23-5-318, a person may not deal cards in a live card game of panguingue or poker without being licensed annually by the department.
(2) The fee for the first year in which the license is effective is $75, and the annual renewal fee is $25. The fee may not be prorated.
(3) The department shall retain for administrative purposes the license fee charged for the issuance of a dealer’s license.
(4) A licensed dealer shall keep on the dealer’s person and display upon request the dealer’s license when working as a dealer.
(5) (a) The department shall adopt rules to implement temporary licensing procedures until a permanent license is issued to a dealer.
(b) The rules must provide that a temporary license:
(i) may be issued at a local department office or at another public location designated by the department; and (ii) may only be issued upon the payment of the license application fee and submission of an application, required fingerprints, and proof that the applicant for a temporary license has a verifiable offer of employment from a licensed operator or card room contractor.
23-5-313. Rules of play to be posted — rake-off approved. (1) A licensed operator shall prominently display the following information within the sight of the players at a live card game table:
(a) rules governing the conduct of each game; (b) notice of the maximum percentage rake-off; and (c) rules governing the prohibition of credit gambling.
(2) The department may adopt rules specifying the size, display, and content of rules as provided in this part and the manner of taking the rake-off. The rules must include notice of the maximum percentage rake-off, if any, and must require that the person taking the rake-off do so in an obvious manner.
23-5-317. Tournaments. (1) Subject to the department’s approval, a licensed operator who has a permit for placing at least 1 live card game table on the operator’s premises may conduct up to 12 live card game tournaments a year on the operator’s premises. Each tournament may be conducted for no more than 5 consecutive days. If an operator conducts more than one tournament a year, at least 7 days must lapse between the conclusion of one tournament and the beginning of the next tournament.
(2) (a) Before the start of a tournament, the operator shall submit to the department an application for a tournament permit. The permit application must be accompanied by a $10 fee. The department shall retain the fee for administrative purposes.
(b) If a tournament is to be conducted on the premises of more than one licensed operator, each operator shall submit a permit application and processing fee. The permit is applied toward each operator’s annual 12-tournament limit.
(c) A licensed operator may participate in a progressive card game tournament in which the ultimate prize is not awarded until the final round of the tournament is completed.
(d) At least 50% of the total of all entrance fees for any tournament that is represented as a charitable tournament must be paid to a charitable, educational, or recreational nonprofit organization.
(3) Permits for placement of additional live card game tables, as provided in 23-5-306, are not required for additional tables authorized under a tournament permit.
(4) Tournament participants must be provided with a copy of the tournament rules before the start of the tournament. A copy of the rules must be posted in a conspicuous location in each area where the tournament is conducted.
(5) A person must be present on the premises during the tournament to oversee the conduct of the card games and to settle disputes among players. This person may be a dealer licensed under 23-5-308.
(6) Only a dealer licensed under 23-5-308 may deal cards at a poker or panguingue tournament.
(7) A licensed operator may charge a tournament participant an entry fee, which may include a fee to cover expenses incurred in conducting the tournament. A participant who has been eliminated from competition during the tournament may reenter the tournament by paying an additional fee if permitted to do so under tournament rules. A rake-off may not be taken during a tournament card game.
(8) The face value of the chips used does not govern the value of the pot awarded at the end of the tournament.
(9) The prize for a tournament may be the right to participate in another tournament if the value of a seat in the higher-level tournament is equivalent to the value of the expected top prize for the tournament.
(10) The total amount paid by an individual to enter a tournament, including any additional purchase of chips or other payment during the tournament, may not exceed $2,500.
(11) The provisions of this part and the department rules governing live card games apply to live card games conducted as part of a tournament unless otherwise provided.
23-5-325. Regulation of house players. (1) The department shall provide rules to regulate the use of house players by licensed operators and licensed card room contractors.
(2) House players may be used only for the purpose of starting a card game or maintaining a sufficient number of players in a card game.
(3) Any chips or money advanced by an operator, card room contractor, or dealer to a house player may not become a debt of the player.
(4) The operator, card room contractor, or dealer shall identify house players upon request.
23-5-409. Bingo and keno tax — records — distribution — statement and payment. (1) A licensee who has received a permit to operate bingo or keno games shall pay to the department a tax of 1% of the gross proceeds from the operation of each live bingo and keno game operated on the licensee’s premises.
(4) The department shall forward the tax collected under subsection (3) to the treasurer of the county or the clerk, finance officer, or treasurer of the city or town in which the licensed game is located for deposit to the county or municipal treasury. A county is not entitled to proceeds from taxes on live bingo or keno games located in incorporated cities and towns within the county. The tax collected under subsection (3) is statutorily appropriated to the department, as provided in 17-7-502, for deposit to the county or municipal treasury.
23-5-412. Card prices and prizes — exception. (1) Except as provided in subsection (3):
23-5-413. Raffle prizes — investigations — rulemaking. (1) (a) The department shall investigate all violations of this part.
23-5-610. Video gambling machine gross income tax — records — distribution — quarterly statement and payment. (1) A licensed machine owner shall pay to the department a video gambling machine tax of 15% of the gross income from each video gambling machine issued a permit under this part. A licensed machine owner may deduct from the gross income amounts equal to amounts stolen from machines if the amounts stolen are not repaid by insurance or under a court order, if a law enforcement agency investigated the theft, and if the theft is the result of either unauthorized entry and physical removal of the money from the machines or of machine tampering and the amounts stolen are documented.
(2) A licensed machine owner shall keep a record of the gross income from each video gambling machine issued a permit under this part in the form the department requires. The records must at all times during the business hours of the licensee be subject to inspection by the department.
(3) For each video gambling machine issued a permit under this part, a licensed machine owner shall, within 15 days after the end of each quarter and in the manner prescribed by the department, complete and deliver to the department a statement showing the total gross income, together with the total amount due the state as video gambling machine gross income tax for the preceding quarter. The statement must contain other relevant information that the department requires.
(4) The department shall, in accordance with the provisions of 17-2-124, forward the tax collected under subsection (3) of this section to the state treasurer for deposit in the general fund.
(a) implement 23-5-637; (b) describe the video gambling machines authorized by this part and state the specifications for video gambling machines authorized by this part, including a description of the images and the minimum area of a screen that depicts a bingo, poker, or keno game; (c) allow video gambling machines to be imported into this state and used for the purposes of trade shows, exhibitions, and similar activities; (d) allow each video gambling machine to offer any combination of approved poker, keno, and bingo games within the same video gambling machine cabinet if the owner of the video gambling machine has received approval to report video gambling machine information utilizing an approved automated accounting and reporting system or has entered into an agreement with the department to utilize an approved automated accounting and reporting system; (e) allow, on an individual license basis, licensed machine owners and operators of machines that utilize an approved automated accounting and reporting system to:
(i) electronically acquire and use for an individual licensed premises the information and data collected for business management, accounting, and payroll purposes; however, the rules must specify that the data made available as a result of an approved automated accounting and reporting system may not be used by licensees for player tracking purposes; and (ii) acquire and use, at the expense of a licensee, a department-approved site controller; (f) minimize, whenever possible, the recordkeeping and retention requirements for video gambling machines that utilize an approved automated accounting and reporting system.
(a) provide for confidentiality of information received through the approved automated accounting and reporting system within the limits prescribed by 23-5-115(8) and 23-5-116; (b) prescribe specifications for maintaining the security and integrity of the approved automated accounting and reporting system; (c) limit and prescribe the circumstances for electronic issuance of video gambling machine permits and electronic transfer of funds for payment of taxes, fees, or penalties to the department; (d) describe specifications and a review and testing process for approved automated accounting and reporting systems to be utilized by licensed operators, including the requirements for electronically captured data; and (e) prescribe the frequency of reporting from an approved automated accounting and reporting system and provide exceptions for geographically isolated video gambling operators.
23-5-622. Tampering with video gambling machine — penalty.
(1) A person commits the offense of tampering with a video gambling machine if he purposely or knowingly manipulates or attempts or conspires to manipulate the outcome or payoff of a video gambling machine by physical tampering or other interference with the proper functioning of the machine.
(2) A violation of this section is a felony and must be punished in accordance with 23-5-162.
23-5-710. Requirements for conducting casino nights. A nonprofit organization that has obtained a permit under 23-5-706 shall conduct a casino night in compliance with the following conditions:
23-5-801. Fantasy sports leagues defined. As used in this part, a “fantasy sports league” means a gambling activity conducted in the following manner:
(1) A fantasy sports league consists of a limited number of persons or groups of persons who pay an entrance fee for membership in the league. The entrance fee may include an administrative fee.
(2) Each league member creates a fictitious team composed of athletes from a given professional sport, such as baseball, basketball, or football. Player selection is conducted through random drawings, a bidding process, or by selection from a roster prepared by the parimutuel network coordinator.
(3) Except for fantasy sports leagues operated under Title 23, chapter 4, after the initial teams are selected, interim replacement of players may occur by trade or purchase. A specific fee, which may not exceed the total entrance fee, is charged for each transaction.
(4) A method, as defined by league rules, is devised to permit each team to compete against other teams in the league. Points are awarded to a team according to the performance of individual players or teams or both during a designated time period.
(5) A league member may be eligible to receive a payout based on the number of points accumulated. Payouts, which may be in the form of cash or prizes, are awarded according to league rules.
(6) The roster of eligible participants prepared by the parimutuel network must be provided to each league member.
(7) Rules governing the conduct of the fantasy sports league must be provided in writing to each league member.
23-5-805. Payouts — administrative fees charged by commercial establishments. (1) Except as provided in subsection (2)(b), the total value of payouts to all league members must equal the amount collected for entrance, administrative, and transactions fees, minus payment for administrative expenses.
(2) (a) Except as provided in subsection (2)(b), if a commercial establishment charges an administrative fee for conducting a fantasy sports league, the fee for each participant may not be more than 15% of the amount charged as a participant’s entrance fee.
(b) The parimutuel network, as defined in 23-4-101, shall distribute all funds wagered on fantasy sports leagues in any wagering pool pursuant to the requirements of 23-4-302 and 23-4-304.
23-5-806. Sports betting prohibited — applicability. Sections 23-5-801, 23-5-802, and 23-5-805 do not:
(1) authorize betting or wagering on the outcome of an individual sports event; or (2) apply to gambling activities governed under Title 23, chapter 4, except for parimutuel facilities, parimutuel networks, or simulcast parimutuel networks conducting fantasy sports leagues, or under Title 23, chapter 5, part 2 or 5.