Florida Senate - 2016 SB 832 By Senator Negron 32-00936-16 2016832__ 1 A bill to be entitled 2 An act relating to fantasy games; creating ch. 547, 3 F.S., entitled “Fantasy Games”; creating s. 547.01, 4 F.S.; defining terms; creating s. 547.02, F.S.; 5 requiring certain game operators to register with the 6 Department of Agriculture and Consumer Services and to 7 pay related fees; requiring a game operator to 8 implement certain procedures; requiring a game 9 operator to prevent certain persons from competing in 10 a fantasy game; preventing certain information from 11 being shared with third parties; requiring a game 12 operator to verify the age of a game participant; 13 restricting certain persons from participating in a 14 fantasy game; requiring a game operator to allow 15 individuals to restrict or prevent their own access to 16 fantasy games; requiring that certain information be 17 disclosed to game participants; requiring the 18 segregation of certain funds by a game operator; 19 requiring a game operator to annually contract with a 20 third party to perform an independent audit; requiring 21 a game operator to submit the audit results to the 22 department; creating s. 547.03, F.S.; providing a 23 civil penalty; creating s. 547.04, F.S.; exempting 24 fantasy games from regulation under ch. 849, F.S.; 25 providing an effective date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Chapter 547, Florida Statutes, entitled 30 “Fantasy Games,” is created. 31 Section 2. Section 547.01, Florida Statutes, is created to 32 read: 33 547.01 Definitions.—As used in this chapter, the term: 34 (1) “Confidential information” means information related to 35 the playing of fantasy games by game participants which is 36 obtained solely as a result of a person’s employment with or 37 work as an agent for a game operator. 38 (2) “Department” means the Department of Agriculture and 39 Consumer Services. 40 (3) “Fantasy game” means a fantasy or simulation sports 41 game or educational game or contest that meets the following 42 conditions: 43 (a) The value of all prizes and awards offered to winning 44 game participants is established and made known to the game 45 participants in advance of the fantasy game. 46 (b) All winning outcomes reflect the relative knowledge and 47 skill of game participants and are determined predominantly by 48 accumulated statistical results of the performance of 49 individuals, including athletes in the case of sporting events. 50 (c) A winning outcome is not based on the score, point 51 spread, or performance of a single team or combination of such 52 teams or on any single performance of an individual athlete or 53 player in a single event. 54 (4) “Game operator” means a person or an entity that offers 55 fantasy games for a cash prize to more than 750 members of the 56 public. 57 (5) “Game participant” means a person who participates in a 58 fantasy game offered by a game operator. 59 Section 3. Section 547.02, Florida Statutes, is created to 60 read: 61 547.02 Consumer protection.— 62 (1) A game operator offering fantasy games in this state 63 must register with the department. The initial registration fee 64 is $500,000 and the annual renewal fee is $100,000. 65 (2) A game operator offering fantasy games in this state 66 must implement procedures that are intended to: 67 (a) Prevent employees or relatives living in the same 68 household as any game operator from competing in a fantasy game 69 in which the game cash prize is over $5. 70 (b) Prohibit the game operator from being a game 71 participant in a fantasy game that he or she offers. 72 (c) Prevent the employees or agents of the game operator 73 from sharing confidential information that could affect fantasy 74 game play with third parties until the information is made 75 publicly available. 76 (d) Verify that a game participant is 18 years of age or 77 older. 78 (e) Restrict an individual who is a player, game official, 79 or other participant in a real-world game or competition from 80 participating in a fantasy game that is determined in whole or 81 in part on the performance of that individual, the individual’s 82 real-world team, or the accumulated statistical results of the 83 sport or competition in which he or she is a player, game 84 official, or other participant. 85 (f) Allow individuals to restrict or prevent their own 86 access to a fantasy game and take reasonable steps to prevent 87 those individuals from entering a fantasy game. 88 (g) Disclose the number of fantasy games a single game 89 participant may enter and take reasonable steps to prevent game 90 participants from entering more than the allowable number of 91 fantasy games. 92 (h) Segregate game participants’ funds from operational 93 funds and maintain a reserve in the form of cash, cash 94 equivalents, an irrevocable letter of credit, a bond, or a 95 combination thereof in the total amount of deposits in game 96 participant accounts for the benefit and protection of 97 authorized game participants’ funds held in fantasy game 98 accounts. 99 (3) A game operator offering fantasy games in this state 100 must annually contract with a third party to perform an 101 independent audit, consistent with the standards established by 102 the Public Company Accounting Oversight Board, to ensure 103 compliance with this chapter. The game operator must submit the 104 results of the independent audit to the department. 105 Section 4. Section 547.03, Florida Statutes, is created to 106 read: 107 547.03 Penalties.—A game operator, or an employee or agent 108 thereof, who violates this chapter is subject to a civil penalty 109 not to exceed $1,000 for each violation, which shall accrue to 110 the state and may be recovered in a civil action brought by the 111 department. 112 Section 5. Section 547.04, Florida Statutes, is created to 113 read: 114 547.04 Exemption.—Fantasy games are exempt from regulation 115 under chapter 849. 116 Section 6. This act shall take effect July 1, 2016.