Florida Senate - 2024 SB 1568 By Senator Hutson 7-00750E-24 20241568__ 1 A bill to be entitled 2 An act relating to the Fantasy Sports Contest 3 Amusement Act; creating s. 546.11, F.S.; providing a 4 short title; creating s. 546.12, F.S.; providing 5 legislative findings and intent; creating s. 546.13, 6 F.S.; defining terms; creating s. 546.14, F.S.; 7 requiring the Florida Gaming Control Commission to 8 enforce and administer the act; authorizing the 9 commission to take certain actions; requiring the 10 commission to revoke a contest operator’s license 11 under certain circumstances; requiring the commission 12 to adopt rules; creating s. 546.15, F.S.; providing 13 application requirements for fantasy sports contest 14 operator licenses; providing that specified persons or 15 entities are not eligible for licensure under certain 16 circumstances; defining the term “convicted”; 17 specifying that a contest operator license is 18 automatically suspended under certain circumstances; 19 providing an exception; requiring contest operators to 20 report certain changes in ownership or interest; 21 creating s. 546.16, F.S.; requiring a contest operator 22 to implement specified consumer protection procedures; 23 defining the term “relative”; requiring a contest 24 operator to annually contract with a third party to 25 perform an independent audit; requiring a contest 26 operator to submit the audit results to the commission 27 within a certain timeframe; requiring a contest 28 operator to use data sources that meet specified 29 requirements; creating s. 546.17, F.S.; requiring 30 contest operators to keep and maintain certain records 31 for a specified period; providing a requirement for 32 such records; requiring that such records be available 33 for audit and inspection; requiring the commission to 34 adopt rules; creating s. 546.18, F.S.; providing a 35 civil penalty; providing applicability; exempting 36 fantasy sports contests from certain provisions in ch. 37 849, F.S.; amending s. 16.71, F.S.; prohibiting the 38 Governor from soliciting or requesting certain 39 information from a person who holds a license to 40 conduct fantasy sports contests; amending s. 16.712, 41 F.S.; conforming provisions to changes made by the 42 act; amending s. 16.713, F.S.; revising prohibitions 43 relating to appointment to and employment with the 44 commission to include prohibitions relating to fantasy 45 sports contests licenses; amending s. 16.715, F.S.; 46 revising prohibitions relating to former commissioners 47 and employees of the commission to include 48 prohibitions relating to fantasy sports contests 49 licenses; amending s. 849.142, F.S.; providing that 50 specified provisions do not apply to participation in 51 or the conduct of fantasy sports contests; providing 52 an effective date. 53 54 Be It Enacted by the Legislature of the State of Florida: 55 56 Section 1. Section 546.11, Florida Statutes, is created to 57 read: 58 546.11 Short title.—Sections 546.11-546.18 may be cited as 59 the “Fantasy Sports Contest Amusement Act.” 60 Section 2. Section 546.12, Florida Statutes, is created to 61 read: 62 546.12 Legislative intent; findings.—It is the intent of 63 the Legislature to ensure public confidence in the integrity of 64 fantasy sports contests and contest operators. This act is 65 designed to regulate the contest operators and individuals who 66 participate in such contests and to enact consumer protections 67 related to fantasy sports contests. Furthermore, the Legislature 68 finds that fantasy sports contests, as that term is defined in 69 s. 546.13, involve the skill of contest participants. 70 Section 3. Section 546.13, Florida Statutes, is created to 71 read: 72 546.13 Definitions.—As used in ss. 546.11-546.18, the term: 73 (1) “Act” means the Fantasy Sports Contest Amusement Act, 74 ss. 546.11-546.18. 75 (2) “Commission” means the Florida Gaming Control 76 Commission. 77 (3) “Confidential information” means information related to 78 the playing of fantasy sports contests by contest participants 79 which is obtained solely as a result of a person’s employment 80 with, or work as an agent of, a contest operator. 81 (4) “Contest operator” means a person or an entity that 82 offers fantasy sports contests for a cash prize to members of 83 the public, but does not include a noncommercial contest 84 operator in this state. 85 (5) “Contest participant” means a person who pays an entry 86 fee for the ability to participate in a fantasy or simulation 87 sports game or contest offered by a contest operator or 88 noncommercial contest operator. 89 (6) “Entry fee” means the cash or cash equivalent amount 90 that a person is required to pay to a contest operator or 91 noncommercial contest operator to participate in a fantasy 92 sports contest. 93 (7) “Fantasy sports contest” means a fantasy or simulation 94 sports game or contest offered by a contest operator or a 95 noncommercial contest operator in which a contest participant 96 manages a fantasy or simulation sports team composed of athletes 97 from a professional sports organization and which meets each of 98 the following requirements: 99 (a) All prizes and awards offered to winning contest 100 participants are established and made known to the contest 101 participants in advance of the game or contest, and their value 102 is not determined by the number of contest participants or the 103 amount of any fees paid by those contest participants. 104 (b) All winning outcomes reflect the relative knowledge and 105 skill of the contest participants and are determined 106 predominantly by accumulated statistical results of the 107 performance of individuals, including athletes in the case of 108 sporting events. 109 (c) No winning outcome is based on the score, point spread, 110 or any performance or performances of any single actual team or 111 combination of such teams; solely on any single performance of 112 an individual athlete or player in a single actual event; on a 113 pari-mutuel event, as the term “pari-mutuel” is defined in s. 114 550.002; on a game of poker or other card game; or on the 115 performances of participants in collegiate, high school, or 116 youth sporting events. 117 (d) No casino graphics, themes, or titles, including, but 118 not limited to, depictions of slot machine-style symbols, cards, 119 dice, craps, roulette, or lotto, are displayed or depicted. 120 (8) “Noncommercial contest operator” means a natural person 121 who organizes and conducts a fantasy or simulation sports game 122 in which contest participants are charged entry fees for the 123 right to participate; entry fees are collected, maintained, and 124 distributed by the same natural person; the total entry fees 125 collected, maintained, and distributed by such natural person do 126 not exceed $1,500 per season or a total of $10,000 per calendar 127 year; and all entry fees are returned to the contest 128 participants in the form of prizes. 129 Section 4. Section 546.14, Florida Statutes, is created to 130 read: 131 546.14 Enforcement and administration; rulemaking.— 132 (1) The commission shall enforce and administer this act. 133 (2) The commission may: 134 (a) Conduct investigations and monitor the operation and 135 play of fantasy sports contests. 136 (b) Review the books, accounts, and records of any current 137 or former contest operator. 138 (c) Deny, suspend, or revoke any license under this act for 139 any violation of state law or rule. 140 (d) Take testimony, issue summonses and subpoenas for any 141 witness, and issue subpoenas duces tecum in connection with any 142 matter within its jurisdiction. 143 (e) Monitor and ensure the proper collection and 144 safeguarding of entry fees and the payment of contest prizes in 145 accordance with consumer protection procedures enacted pursuant 146 to s. 546.16. 147 (f) Investigate any licensed or unlicensed person or entity 148 when such person or entity is advertising as offering or 149 providing, or is engaged in conducting, a fantasy sports contest 150 that requires licensure under this act or when a contest 151 operator or noncommercial contest operator is engaged in 152 activities that do not comply with or are prohibited by this 153 act. The commission may issue an order to such licensed or 154 unlicensed person or entity or contest operator or noncommercial 155 contest operator to cease and desist the further conduct of such 156 activities, may seek an injunction, or may take other 157 appropriate action to enforce this act. 158 (3) The commission must revoke a contest operator’s license 159 if the contest operator offers fantasy sports contests that 160 violate s. 546.13(7)(c). 161 (4) The commission shall adopt rules to implement and 162 administer this act. 163 Section 5. Section 546.15, Florida Statutes, is created to 164 read: 165 546.15 Licensing; renewal.— 166 (1) A contest operator must be licensed by the commission 167 to conduct fantasy sports contests within this state. Licenses 168 are effective for 1 year after issuance and must be renewed 169 annually. 170 (2) The license application must include: 171 (a) The full name of the applicant. 172 (b) If the applicant is a corporation, the name of the 173 state in which the applicant is incorporated and the names and 174 addresses of the officers, directors, and shareholders who hold 175 15 percent or more equity. 176 (c) If the applicant is a business entity other than a 177 corporation, the names and addresses of each principal, partner, 178 or shareholder who holds 15 percent or more equity, and any 179 person who individually or in concert with a relative 180 beneficially owns or controls, or has the power to vote or cause 181 the vote of, 15 percent or more equity. For the purposes of this 182 act, the term “relative” means a spouse, father, mother, son, 183 daughter, grandfather, grandmother, brother, sister, uncle, 184 aunt, cousin, nephew, niece, father-in-law, mother-in-law, son 185 in-law, daughter-in-law, brother-in-law, sister-in-law, 186 stepfather, stepmother, stepson, stepdaughter, stepbrother, 187 stepsister, half brother, or half sister. 188 (d) The names and addresses of the ultimate equitable 189 owners of the corporation or other business entity, if different 190 from those provided under paragraph (b) or paragraph (c), unless 191 the securities of the corporation or entity are registered 192 pursuant to s. 12 of the Securities Exchange Act of 1934, 15 193 U.S.C. ss. 78a-78kk, and either: 194 1. The corporation or entity files with the United States 195 Securities and Exchange Commission the reports required by s. 13 196 of that act; or 197 2. The securities of the corporation or entity are 198 regularly traded on an established securities market in the 199 United States. 200 (e) The estimated number of fantasy sports contests to be 201 conducted by the applicant annually. 202 (f) A statement of the assets and liabilities of the 203 applicant. 204 (g) If required by the commission, the names and addresses 205 of the officers and directors of any creditor of the applicant 206 and of stockholders who hold more than 10 percent of the stock 207 of the creditor. 208 (h) For each individual listed in the application pursuant 209 to paragraph (a), paragraph (b), paragraph (c), or paragraph 210 (d), a full set of fingerprints, to be submitted to the 211 commission or to a vendor, an entity, or an agency authorized 212 under s. 943.053(13). 213 1. The commission, vendor, entity, or agency shall forward 214 the fingerprints to the Department of Law Enforcement for state 215 processing, and the Department of Law Enforcement shall forward 216 the fingerprints to the Federal Bureau of Investigation for 217 national processing. 218 2. Fingerprints submitted to the Department of Law 219 Enforcement pursuant to this paragraph must be retained by the 220 Department of Law Enforcement as provided in s. 943.05(2)(g) and 221 (h) and, when the Department of Law Enforcement begins 222 participation in the program, must be enrolled in the Federal 223 Bureau of Investigation’s national retained print arrest 224 notification program. The Department of Law Enforcement shall 225 report to the commission any arrest record identified. 226 (i) For each foreign national, such documents as are 227 necessary to allow the commission to conduct criminal history 228 records checks in the individual’s home country. The applicant 229 must pay the full cost of processing fingerprints and required 230 documentation. 231 (3) The application for renewal must contain all revisions 232 to the information submitted in the prior year’s application 233 which are necessary to maintain such information as both 234 accurate and current. 235 (4) The applicant for renewal must attest that any 236 revisions do not affect the applicant’s qualifications for 237 license renewal. 238 (5) Upon determination by the commission that the 239 application for renewal is complete and qualifications have been 240 met, including payment of the renewal fee, the fantasy sports 241 contests license must be renewed annually. 242 (6) A person or an entity is not eligible for licensure as 243 a contest operator or for licensure renewal if an individual 244 required to be listed pursuant to paragraph (5)(a), paragraph 245 (5)(b), paragraph (5)(c), or paragraph (5)(d) is determined by 246 the commission, after investigation, not to be of good moral 247 character or is found to have been convicted of a felony in this 248 state, any offense in another jurisdiction which would be 249 considered a felony if committed in this state, or a felony 250 under the laws of the United States. As used in this subsection, 251 the term “convicted” means having been found guilty, with or 252 without adjudication of guilt, as a result of a jury verdict, 253 nonjury trial, or entry of a plea of guilty or nolo contendere. 254 (7) The license of a contest operator is automatically 255 suspended upon entry of a final order imposing an administrative 256 fine against the contest operator, until the administrative fine 257 is paid, if 30 calendar days have elapsed since the entry of the 258 final order. The license of a contest operator may not be 259 renewed and an application for licensure as a contest operator 260 may not be approved if the contest operator or the applicant for 261 licensure as a contest operator is liable for an outstanding 262 administrative fine imposed under this act. Notwithstanding this 263 subsection, a contest operator’s license may not be suspended 264 and an application for licensure as a contest operator may not 265 be denied if the contest operator or the applicant has an appeal 266 from a final order pending in any appellate court. 267 (8) Changes in ownership of or interest in a fantasy sports 268 contests license of 5 percent or more of the stock or other 269 evidence of ownership or equity in the contest operator must be 270 approved by the commission before such change, unless the owner 271 is an existing owner of that license who was previously approved 272 by the commission. Changes in ownership of or interest in a 273 fantasy sports contests license of less than 5 percent must be 274 reported to the commission within 20 days after the change. The 275 commission may then conduct an investigation to ensure that the 276 license is properly updated to show the change in ownership or 277 interest. 278 Section 6. Section 546.16, Florida Statutes, is created to 279 read: 280 546.16 Consumer protection.— 281 (1) A contest operator shall implement procedures for 282 fantasy sports contests which: 283 (a) Prevent its employees, their relatives, or persons 284 living in the same household as the employees from competing in 285 a fantasy sports contest in which a cash prize is awarded. 286 However, a contest operator may offer to its employees fantasy 287 sports contests in which the employees are the sole 288 participants. For the purposes of this paragraph, the term 289 “relative” means a spouse, father, mother, son, daughter, 290 grandfather, grandmother, brother, sister, uncle, aunt, cousin, 291 nephew, niece, father-in-law, mother-in-law, son-in-law, 292 daughter-in-law, brother-in-law, sister-in-law, stepfather, 293 stepmother, stepson, stepdaughter, stepbrother, stepsister, half 294 brother, or half sister. 295 (b) Prohibit the contest operator from being a contest 296 participant in a fantasy sports contest that the contest 297 operator offers. 298 (c) Prevent its employees or agents from sharing with a 299 third party confidential information that could affect fantasy 300 sports contest play, until the information has been made 301 publicly available. 302 (d) Verify that contest participants are 21 years of age or 303 older. 304 (e) Restrict an individual who is a player, a game 305 official, or other participant in a real-world game or 306 competition from participating in a fantasy sports contest that 307 is determined, in whole or in part, on the performance of that 308 individual, the individual’s real-world team, or the accumulated 309 statistical results of the sport or competition in which he or 310 she is a player, game official, or other participant. 311 (f) Allow individuals to restrict or prevent their own 312 access to fantasy sports contests and take reasonable steps to 313 prevent those individuals from entering a fantasy sports 314 contest. 315 (g) Limit the number of entries a single contest 316 participant may submit to each fantasy sports contest and take 317 reasonable steps to prevent participants from submitting more 318 than the allowable number of entries. 319 (h) Segregate contest participants’ funds from operational 320 funds or maintain a reserve in the form of cash, cash 321 equivalents, payment processor reserves, payment processor 322 receivables, an irrevocable letter of credit, a bond, or a 323 combination thereof in the total amount of deposits in contest 324 participants’ accounts for the benefit and protection of 325 authorized contest participants’ funds held in fantasy sports 326 contest accounts. 327 (2)(a) A contest operator shall annually contract with a 328 third party to perform an independent audit, consistent with the 329 standards established by the American Institute of Certified 330 Public Accountants, to ensure compliance with this act. The 331 contest operator shall submit the results of the independent 332 audit to the commission no later than 90 days after the end of 333 each annual licensing period. 334 (b) Any data source and the corresponding data to determine 335 the results of all fantasy sports contests offered by contest 336 operators, other than noncommercial contest operators, must be 337 complete, accurate, reliable, and appropriate to settle the 338 outcome of the fantasy sports contests for which they are used. 339 Section 7. Section 546.17, Florida Statutes, is created to 340 read: 341 546.17 Records and reports.—Each contest operator shall 342 keep and maintain daily records of its operations and shall 343 maintain such records for at least 3 years. The records must 344 sufficiently detail all financial transactions required to 345 determine compliance with this act and must be available for 346 audit and inspection by the commission or other law enforcement 347 agencies during the contest operator’s regular business hours. 348 The commission shall adopt rules to implement this section. 349 Section 8. Section 546.18, Florida Statutes, is created to 350 read: 351 546.18 Penalties; applicability; exemption.— 352 (1)(a) A contest operator, or an employee or agent thereof, 353 that violates this act is subject to an administrative fine not 354 to exceed $5,000 for each violation and not to exceed $100,000 355 in the aggregate. All fines imposed and collected under this 356 subsection must be deposited with the Chief Financial Officer to 357 the credit of the General Revenue Fund. An action to recover 358 such penalties may be brought by the commission or the 359 Department of Legal Affairs in the name and on behalf of the 360 state. 361 (b) The penalty provisions established in this subsection 362 do not apply to violations committed by a contest operator which 363 occurred before the issuance of a license under this act if the 364 contest operator applies for a license within 90 days after the 365 date the commission begins accepting applications and receives a 366 license within 240 days after such date. 367 (2) Fantasy sports contests conducted by a contest operator 368 or noncommercial contest operator in accordance with this act 369 are not subject to s. 849.01, s. 849.08, s. 849.09, s. 849.11, 370 s. 849.14, or s. 849.25. 371 Section 9. Paragraph (b) of subsection (3) of section 372 16.71, Florida Statutes, is amended to read: 373 16.71 Florida Gaming Control Commission; creation; 374 meetings; membership.— 375 (3) REQUIREMENTS FOR APPOINTMENT; PROHIBITIONS.— 376 (b) The Governor may not solicit or request any 377 nominations, recommendations, or communications about potential 378 candidates for appointment to the commission from: 379 1. Any person that holds a permit or license issued under 380 chapter 550, or a license issued under chapter 546, chapter 551, 381 or chapter 849; an officer, official, or employee of such 382 permitholder or licensee; or an ultimate equitable owner, as 383 defined in s. 550.002(37), of such permitholder or licensee; 384 2. Any officer, official, employee, or other person with 385 duties or responsibilities relating to a gaming operation owned 386 by an Indian tribe that has a valid and active compact with the 387 state; a contractor or subcontractor of such tribe or an entity 388 employed, licensed, or contracted by such tribe; or an ultimate 389 equitable owner, as defined in s. 550.002(37), of such entity; 390 or 391 3. Any registered lobbyist for the executive or legislative 392 branch who represents any person or entity identified in 393 subparagraph 1. or subparagraph 2. 394 Section 10. Paragraph (i) of subsection (1) of section 395 16.712, Florida Statutes, is amended to read: 396 16.712 Florida Gaming Control Commission authorizations, 397 duties, and responsibilities.— 398 (1) The commission shall do all of the following: 399 (i) Receive and review violations reported by a state or 400 local law enforcement agency, the Department of Law Enforcement, 401 the Department of Legal Affairs, the Department of Agriculture 402 and Consumer Services, the Department of Business and 403 Professional Regulation, the Department of the Lottery, the 404 Seminole Tribe of Florida, or any person licensed under chapter 405 24, part II of chapter 285, chapter 546, chapter 550, chapter 406 551, or chapter 849 and determine whether such violation is 407 appropriate for referral to the Office of Statewide Prosecution. 408 Section 11. Paragraph (d) of subsection (1) and paragraph 409 (a) of subsection (2) of section 16.713, Florida Statutes, are 410 amended to read: 411 16.713 Florida Gaming Control Commission; appointment and 412 employment restrictions.— 413 (1) PERSONS INELIGIBLE FOR APPOINTMENT TO THE COMMISSION. 414 The following persons are ineligible for appointment to the 415 commission: 416 (d) A person who has had a license or permit issued under 417 chapter 546, chapter 550, chapter 551, or chapter 849 or a 418 gaming license issued by any other jurisdiction denied, 419 suspended, or revoked. 420 (2) PROHIBITIONS FOR EMPLOYEES AND COMMISSIONERS; PERSONS 421 INELIGIBLE FOR APPOINTMENT TO AND EMPLOYMENT WITH THE 422 COMMISSION.— 423 (a) A person may not, for the 2 years immediately preceding 424 the date of appointment to or employment with the commission and 425 while appointed to or employed with the commission: 426 1. Hold a permit or license issued under chapter 550 or a 427 license issued under chapter 546, chapter 551, or chapter 849; 428 be an officer, official, or employee of such permitholder or 429 licensee; or be an ultimate equitable owner, as defined in s. 430 550.002(37), of such permitholder or licensee; 431 2. Be an officer, official, employee, or other person with 432 duties or responsibilities relating to a gaming operation owned 433 by an Indian tribe that has a valid and active compact with the 434 state; be a contractor or subcontractor of such tribe or an 435 entity employed, licensed, or contracted by such tribe; or be an 436 ultimate equitable owner, as defined in s. 550.002(37), of such 437 entity; 438 3. Be a registered lobbyist for the executive or 439 legislative branch, except while a commissioner or employee of 440 the commission when officially representing the commission or 441 unless the person registered as a lobbyist for the executive or 442 legislative branch while employed by a state agency as defined 443 in s. 110.107 during the normal course of his or her employment 444 with such agency and he or she has not lobbied on behalf of any 445 entity other than a state agency during the 2 years immediately 446 preceding the date of his or her appointment to or employment 447 with the commission; or 448 4. Be a bingo game operator or an employee of a bingo game 449 operator. 450 451 For the purposes of this subsection, the term “relative” means a 452 spouse, father, mother, son, daughter, grandfather, grandmother, 453 brother, sister, uncle, aunt, cousin, nephew, niece, father-in 454 law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, 455 sister-in-law, stepfather, stepmother, stepson, stepdaughter, 456 stepbrother, stepsister, half brother, or half sister. 457 Section 12. Paragraphs (b) and (c) of subsection (2) of 458 section 16.715, Florida Statutes, are amended to read: 459 16.715 Florida Gaming Control Commission standards of 460 conduct; ex parte communications.— 461 (2) FORMER COMMISSIONERS AND EMPLOYEES.— 462 (b) A commissioner may not, for the 2 years immediately 463 following the date of resignation or termination from the 464 commission: 465 1. Hold a permit or license issued under chapter 550, or a 466 license issued under chapter 546, chapter 551, or chapter 849; 467 be an officer, official, or employee of such permitholder or 468 licensee; or be an ultimate equitable owner, as defined in s. 469 550.002(37), of such permitholder or licensee; 470 2. Accept employment by or compensation from a business 471 entity that, directly or indirectly, owns or controls a person 472 regulated by the commission; from a person regulated by the 473 commission; from a business entity which, directly or 474 indirectly, is an affiliate or subsidiary of a person regulated 475 by the commission; or from a business entity or trade 476 association that has been a party to a commission proceeding 477 within the 2 years preceding the member’s resignation or 478 termination of service on the commission; or 479 3. Be a bingo game operator or an employee of a bingo game 480 operator. 481 (c) A person employed by the commission may not, for the 2 482 years immediately following the date of termination or 483 resignation from employment with the commission: 484 1. Hold a permit or license issued under chapter 550, or a 485 license issued under chapter 546, chapter 551, or chapter 849; 486 be an officer, official, or employee of such permitholder or 487 licensee; or be an ultimate equitable owner, as defined in s. 488 550.002(37), of such permitholder or licensee; or 489 2. Be a bingo game operator or an employee of a bingo game 490 operator. 491 Section 13. Subsection (7) is added to section 849.142, 492 Florida Statutes, to read: 493 849.142 Exempted activities.—Sections 849.01, 849.08, 494 849.09, 849.11, 849.14, and 849.25 do not apply to participation 495 in or the conduct of any of the following activities: 496 (7) Fantasy sports contests conducted pursuant to chapter 497 546. 498 Section 14. This act shall take effect July 1, 2024.