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.
   27  Be It Enacted by the Legislature of the State of Florida:
   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.