An Act To Regulate and Tax Sports Fantasy League Activities in Maine
Maine Legislature, Session 128, LD 1320
Committee: Veterans and Legal Affairs
Sponsors: KATZ, TIMBERLAKE, CUSHING, JACKSON, MASON, FARRIN, GOLDEN

Legislative Document
No. 1320
S.P. 449
In Senate, April 4, 2017
An Act To Regulate and Tax Sports Fantasy League Activities in 
Maine
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator KATZ of Kennebec.
Cosponsored by Representative TIMBERLAKE of Turner and
Senators: CUSHING of Penobscot, JACKSON of Aroostook, MASON of Androscoggin, 
Representatives: FARRIN of Norridgewock, GOLDEN of Lewiston.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  8 MRSA c. 33 is enacted to read: 
CHAPTER 33 
REGULATION OF FANTASY CONTESTS 
§1101.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Department.  "Department" means the Department of Public Safety. 
2.  Entry fee.  "Entry fee" means cash or a cash equivalent that is required to be paid 
by a fantasy contest player to a fantasy contest operator in order to participate in a fantasy 
contest. 
3.  Fantasy contest.  "Fantasy contest" means a simulated game or contest in which: 
A.  One or more players pay an entry fee; 
B.  The players compete for prizes of value; 
C.  A prize is awarded to the winner of the game based on the outcome of the game; 
and 
D.  The outcome of the game reflects the relative knowledge and skill of the players 
and is determined predominantly by accumulated statistical results of the 
performance of individuals, including athletes in the case of sporting events. 
4.  Fantasy contest operator.  "Fantasy contest operator" means a person that offers 
a platform for the playing of fantasy contests and that administers a fantasy contest for 
which an entry fee is collected and a prize of value is awarded. 
5.  Fantasy contest player or player.  "Fantasy contest player" or "player" means an 
individual who participates in a fantasy contest offered by a fantasy contest operator. 
6.  Gross fantasy contest revenues.  "Gross fantasy contest revenues" means the 
amount determined by subtracting the total of all sums paid out by a fantasy contest 
operator as prizes to all fantasy contest players from the total of all entry fees that the 
fantasy contest operator collects from all fantasy contest players and multiplying the 
result by the resident percentage. 
7.  Platform.  "Platform" means a website or a mobile application. 
8.  Resident percentage.  "Resident percentage" means, for each fantasy contest, the 
percentage, rounded to the nearest tenth, obtained by dividing the total amount of entry 
fees collected from fantasy contest players located in this State by the total amount of 
entry fees collected from all fantasy contest players. 
§1102.  Registration requirements for fantasy contest operators 
A fantasy contest operator may not offer a fantasy contest in this State without first 
being registered with the department, except during such time as the fantasy contest 
operator's application for registration is pending before the department as provided in 
section 1103, subsection 2. Applications for registration must be on forms provided by 
the department. 
1.  Initial registration.  Before obtaining a registration to offer fantasy contests in 
this State, a fantasy contest operator must: 
A.  Be authorized to transact business in this State; and 
B.  Pay to the department a fee of 10% of the fantasy contest operator's gross fantasy 
contest revenues for the preceding 12 months, not to exceed $5,000. If a fantasy 
contest operator did not operate a fantasy contest in this State in the 12 months 
preceding registration, no registration fee is due. 
2.  Annual registration.  Annually, on or before the anniversary date of the initial 
registration pursuant to subsection 1, a fantasy contest operator shall file for renewal of 
the registration and pay to the department a registration renewal fee of 10% of that 
fantasy contest operator's gross fantasy contest revenues for the preceding 12 months, not 
to exceed $5,000. 
3.  Transfer of registration.  A registration under this chapter may be transferred 
from one person to another.  The transferor and transferee each must file a request for 
transfer with the department.  The department may not withhold approval of the transfer 
unless the department reasonably believes that the transferee is or may be in violation of 
the provisions of this chapter, in which case it shall notify, in writing, the transferor and 
transferee of the decision of the department.  The transferee, unless notified by the 
department that approval of the transfer has been withheld, may operate as a fantasy 
contest operator during the pendency of the transfer application.  If the transferee begins 
operation as a fantasy contest operator, the transferor shall cease operation in this State as 
a fantasy contest operator immediately.  In no case may more than one person operate as 
a fantasy contest operator in this State under the same registration at the same time. 
4.  Form of payment; nonrefundable.  A fantasy contest operator shall pay all fees 
under this section to the department in the manner required by the department and in the 
form, which may be electronic, required by the department.  The fees paid by a fantasy 
contest operator pursuant to this section are nonrefundable. 
5.  Extension to file; lapse of registration.  The department, upon receipt of a 
written request received prior to the expiration of the registration, may grant an extension 
of time to file for registration under subsection 2.  A fantasy contest operator that allows 
its registration to lapse without requesting an extension of time to file shall resubmit an 
initial registration under subsection 1. 
§1103.  Registration issuance by department 
1.  Review and issuance by department.  The department shall consider all 
applications for registration pursuant to section 1102 and shall issue a registration to an 
applicant that meets the criteria set forth in this section and as established by the 
department by rule pursuant to section 1104.  The department may not issue a registration 
to an applicant that does not meet those criteria. 
2.  Operation while application is pending.  A fantasy contest operator applying for 
registration or renewal or transfer of a registration under this chapter may operate during 
the period the application is pending unless the department, based on reasonable cause, 
believes that the applicant is or may be in violation of the provisions of this chapter.  In 
that case, the department shall notify the applicant in writing that the applicant may not 
operate or must suspend the operation of any fantasy contest until registration or renewal 
or transfer of registration is issued. 
3.  Approval or denial required within 60 days.  The department shall issue or 
deny a registration or renewal or approval of transfer of registration under this chapter 
within 60 days of receipt of the application for registration, renewal or transfer. If the 
department denies the registration, renewal or transfer, the department shall provide the 
applicant or fantasy contest operator with the specific reason or reasons, in writing, for 
not issuing the registration, renewal or transfer. 
§1104.  Powers and duties of department 
1.  Adoption of rules.  The department shall adopt rules to implement this chapter, 
including rules for the following purposes: 
A.  Administration of this chapter, including forms and acceptable methods of filing 
forms and paying fees; 
B.  Prevention of practices that are detrimental to the public interest and protection of 
the best interests of fantasy contest players and operators; 
C.  Standards and criteria for the review of registrations; and 
D.  Establishing methods for imposing penalties and collecting fines authorized 
pursuant to section 1106 for violations of this chapter. 
Rules adopted pursuant to this subsection are routine technical rules as described in Title 
5, chapter 375, subchapter 2-A. 
2.  Prohibited rulemaking.  The department may not adopt rules limiting or 
regulating: 
A.  The administration of individual fantasy contests; 
B.  The statistical makeup of a fantasy contest; or 
C.  The platform of a fantasy contest operator. 
§1105.  Duties of fantasy contest operator to protect consumers 
1.  Conditions of operation.  As a condition of registration, a fantasy contest 
operator shall submit evidence that the fantasy contest operator has established and will 
implement commercially reasonable procedures for fantasy contests that: 
A.  Prevent an employee of the fantasy contest operator, and relatives of an employee 
living in the same household as that employee, from participating in a fantasy contest 
offered by a fantasy contest operator; 
B.  Prevent sharing with 3rd parties of confidential information that could affect 
fantasy contest play until the information is made publicly available.  As used in this 
paragraph, "confidential information" means information related to the play of a 
fantasy contest by fantasy contest players obtained as a result of or by virtue of a 
person's employment; 
C.  Prevent the fantasy contest operator from participating in a fantasy contest offered 
or operated by that fantasy contest operator; 
D.  Provide that a winning outcome may not be based on the score, point spread or 
performance of a single actual sports team or combination of such teams or solely on 
a single performance of an individual athlete or participant in a single actual sporting 
event; 
E.  Prohibit the following individuals from participating in a fantasy contest based on 
the sport or competition in which the individual participates or is otherwise 
associated: 
(1)  An athlete or individual who participates or officiates in a game, league or 
competition that is the subject of a fantasy contest; or 
(2)  A sports agent, team employee, referee or umpire or league official 
associated with a sport or athletic event; 
F.  Verify that a fantasy contest player in a fantasy contest is 18 years of age or older; 
G.  Provide fantasy contest players with access to information on responsible play; 
H.  Provide fantasy contest players with access to information on seeking assistance 
for compulsive behavior; 
I.  Provide a fantasy contest player with access to that player's play history and 
account details; 
J.  Allow individuals to restrict themselves from entering fantasy contests upon 
request and provide reasonable steps to prevent the individuals from entering fantasy 
contests offered by the fantasy contest operator; and 
K.  Disclose the number of entries that a fantasy contest player may submit to each 
fantasy contest and provide reasonable steps to prevent players from submitting more 
than the allowable number. 
2.  Certain leagues and contests prohibited.  A fantasy contest operator may not 
offer a fantasy contest based on the performances of participants in collegiate or high 
school athletic events or other athletic events involving participants less than 18 years of 
age. 
3.  Notice of prizes required.  A fantasy contest operator shall provide publicly 
available notice of all prizes offered to winning players in advance of the fantasy contest. 
4.  Funds; audit.  A fantasy contest operator registered under this chapter shall: 
A.  Segregate fantasy contest player funds from operational funds; 
B.  Maintain a reserve that exceeds the amount of player funds on deposit; this 
reserve may not be used for operational activities.  Reserve funds may take the form 
of cash, cash equivalents, payment processor reserves, payment processor 
receivables, an irrevocable letter of credit, a bond or any combination thereof, in an 
amount that exceeds the total balances of the fantasy contest players' accounts; 
C.  Annually contract with a certified public accountant to conduct an independent 
audit, consistent with the standards accepted by the American Institute of Certified 
Public Accountants or a successor organization, to ensure compliance with paragraph 
B; and 
D.  Provide to the department a copy of the audit report prepared pursuant to 
paragraph C.  Information submitted to the department pursuant to this paragraph is 
confidential and is not a public record within the meaning of Title 1, chapter 13, 
subchapter 1. 
§1106.  Civil penalty 
A person, firm, corporation, association, agent or employee of one of those entities 
who knowingly violates a provision of this chapter or a rule adopted under this chapter is 
liable for a civil penalty of not more than $1,000 for each violation, not to exceed $5,000 
for violations arising out of the same transaction or occurrence.  Fines collected pursuant 
to this section accrue to the State and may be recovered in a civil action brought by the 
department against the violator. 
§1107.  Fantasy contests conducted under this chapter not illegal gambling 
Notwithstanding any provision of law to the contrary, a fantasy contest conducted in 
accordance with this chapter is not considered gambling subject to Title 17-A, chapter 39 
or any other laws regulating or prohibiting gambling. 
Sec. 2.  Existing fantasy contest operators.  Notwithstanding the Maine 
Revised Statutes, Title 8, section 1102, a fantasy contest operator, as defined in Title 8, 
section 1101, that was offering contests to persons located in this State prior to the 
effective date of Title 8, chapter 33 may continue to offer fantasy contests to persons 
located in this State until 60 days after applications for registration are made available to 
the public by the Department of Public Safety.  A fantasy contest operator that does not 
apply for registration during that 60-day period shall cease operations within this State by 
the expiration of the 60-day period. 
SUMMARY 
This bill requires persons who operate fantasy contests to register annually with the 
Department of Public Safety and pay a registration fee based on the gross revenues 
generated by that fantasy contest operator during the 12 months prior to registration or 
renewal.  "Fantasy contest" is defined as a simulated game or contest in which one or 
more players pay an entry fee and compete for and win prizes of value based on outcomes 
that reflect the relative knowledge and skill of the players and that are determined 
predominantly by accumulated statistical results of the performance of individuals, 
including athletes in the case of sporting events. 
This bill regulates the operators of fantasy contests, including by prohibiting the 
fantasy contest operator, an employee of the operator or a relative of the employee in the 
same household from participating in the contests; requiring the outcome to be based on 
more than just a score or point spread of a single game or contest; allowing an individual, 
on that individual's request to the operator, to be barred from playing in the contest; 
requiring the operator to provide notice of the prizes prior to the contest; and requiring 
the operator to establish a separate reserve account for the payment of prizes. 
Finally, the bill exempts fantasy contests from the laws prohibiting games of chance 
and gambling.