Louisiana Administrative Code › Title 42 - LOUISIANA GAMING › Part VII - Louisiana Fantasy Sports Contests › Chapter 5 - Rules; Operations › Section VII-501 - Fantasy Sports Contest Operator Requirements and Restrictions; Internal Controls

Current through Register Vol. 50, No. 6, June 20, 2024
A. Licensees
				may only conduct fantasy sports contests expressly authorized by the Act, these
				regulations, or its internal controls.
B. Fantasy sports contests authorized by the
				Act shall be conducted pursuant to the Act, these regulations, and a licensees
				internal controls.
C. An applicant
				shall submit its internal controls with its application for licensing.
				Licensees shall submit updated internal controls to ensure the division is in
				possession of the licensees current internal controls at all times.
D. Licensees internal controls shall
				implement commercially reasonable procedures for fantasy sports contests with
				an entry fee to ensure compliance with all requirements of the Act, these
				regulations and the following:
1. prohibit
				participation of a player in fantasy sports contests while the player is
				located in a prohibited parish;
2.
				comply with all applicable tax laws and regulations including, without
				limitation, laws and regulations applicable to winnings and tax withholding to
				taxing authorities and players;
3.
				prevent entries into fantasy sports contests as follows:
a. no more than one entry per player in a
				contest involving 12 or few entries;
b. no more than two entries per player in a
				contest involving 13 to 36 entries;
c. no more than three entries per player in a
				contest involving 37 to 99 entries; and
d. no more than the lesser of three percent
				of all entries or 150 entries in a contest involving one hundred or more
				entries;
e. notwithstanding
				Subparagraphs a through d of this Paragraph, a licensee may establish fantasy
				sports contests in which there are no restrictions on the number of entries if
				those contests constitute less than two percent of the total number of contests
				it offers and if the licensee clearly discloses that there are no limits on the
				number of entries per player and the entry fee is $50 or more per
				entry;
4. prevent players
				from participating in a fantasy sports contest where the entry fee is greater
				than the balance in the players account;
5. prevent employees of the licensee, and
				relatives of an employee living in the same household as an employee of a
				licensee, from competing in fantasy sports contests offered by a licensee in
				which the licensee offers a cash prize to the general public;
6. prevent sharing of confidential
				information that could affect fantasy sports contests with third parties until
				the information is made publicly available;
7. that no winning outcome is based on the
				score, point spread, or any performance of any single real-world sports team or
				combination of such teams or solely on any single performance of an individual
				athlete or person engaged in any single real-world sporting event;
8. that the following persons do not
				participate in fantasy sports contests:
a.
				athletes and individuals who engage in or officiate a game or competition that
				is a real-world sport or athletic event that is the subject of a fantasy sports
				contest; and
b. any sports agent,
				team employee, referee, or league official associated with a real-world sport
				or athletic event that is the subject of a fantasy sports contest;
9. verify that a fantasy sports
				contest player is 21 years of age or older;
10. provide fantasy sports contest players
				with access to information on responsible play;
11. provide fantasy sports contest players
				with access to the fantasy sports contest player's play history and account
				details that are not confidential;
12. allow individuals to restrict themselves
				from entering a fantasy sports contest upon request and provide reasonable
				steps to prevent the person entering fantasy sports contests offered by a
				licensee;
13. segregate fantasy
				sports contest player funds from operational funds or maintain a reserve that
				exceeds the amount of player funds on deposit, which 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 a combination thereof, in the amount
				that must exceed the total balances of the fantasy sports contest players'
				accounts. If a licensee chooses to utilize a special purpose segregated account
				for the purpose of segregation or reserve funds, it shall submit to the
				division all information and documentation regarding the account and shall
				receive approval prior to using the account for such purposes;
14. prohibit the use of unauthorized scripts
				or scripting programs for any contest that gives an unfair advantage over other
				players in fantasy sports contests and ensure that commercially reasonable
				measures are in place to deter, detect, and, to the extent reasonably possible,
				prevent cheating, collusion, and the use of cheating devices, including
				unauthorized software programs that submit entry fees or adjust the athletes
				selected by a player;
15. not offer
				fantasy sports contests based on the performances of athletes or persons that
				engage in high school or youth athletic events;
16. not offer a fantasy sports contest to the
				general public that does not establish and make known all prizes and awards
				offered to winning players in advance of the game or contest;
17. withhold all winnings from players
				determined to be under the age of 21 or determined to have participated in a
				fantasy sports contest from within a prohibited parish;
18. allow players to file complaints
				regarding the fantasy sports contest operation and the handling of the players
				fantasy sports contest account;
19.
				verify the following for players requesting to open an account:
a. identity; and
b. date of birth.
20. publish and facilitate parental control
				procedures to allow parents or guardians to exclude minors from access to any
				contest or platform; and
21.
				determine the geographical location of a player when participating in a fantasy
				sports contest.