2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 14 - Interactive Fantasy Sports › 1404 - Required Safeguards, Minimum Standards.

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