RSA 287-H:3 · Consumer Protection

287-H:3 Consumer Protection. –

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I.

As a condition of registration, a fantasy sports contest operator shall submit evidence satisfactory to the commission that the operator has established and shall implement commercially reasonable procedures for fantasy sports contests with an entry fee that:

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(a)

Prevent employees of the fantasy sports contest operator, and relatives living in the same household as such employees, from competing in any fantasy sports contest offered by any fantasy sports contest operator in which the operator offers a prize to the general public;

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(b)

Prevent sharing of confidential information that could affect such fantasy sports contest play with third parties until the information is made publicly available;

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(c)

Prevent the fantasy sports contest operator from participating in such fantasy sports contest he or she offers;

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(d)

Provide that no winning outcome is based on the score, point spread, or any performance of any single actual sports team or combination of such teams or solely on any single performance of an individual athlete or participant in any single actual sporting event;

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(e)

Prohibit the following persons from participating in any fantasy sports contest:

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(1)

Athletes and individuals who participate or officiate in a game or competition that is the subject of the fantasy sports contest;

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(2)

Any sports agent, team employee, referee, or league official associated with a sport or athletic event that is the subject of the fantasy sports contest.

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(f)

Verify that a fantasy sports contest player in such a fantasy sports contest is 18 years of age or older;

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(g)

Provide fantasy sports contest players with access to information on responsible play;

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(h)

Provide fantasy sports contest players with access to information on seeking assistance for compulsive behavior;

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(i)

Provide fantasy sports contest players with access to the fantasy sports contest player's play history and account details;

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(j)

Allow individuals to restrict themselves from entering such a fantasy sports contest upon request and provide reasonable steps to prevent the person from entering such fantasy sports contests offered by the fantasy sports contest operator;

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(k)

Disclose the number of entries that a fantasy sports contest player may submit to each such fantasy sports contest and provide reasonable steps to prevent players from submitting more than the allowable number; and

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(l)

Take reasonable steps to not advertise or run promotional activities at elementary or secondary schools or on college campuses.

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II.

The information required to be submitted pursuant to paragraph I or paragraph IV shall be exempt from disclosure pursuant to RSA 91-A:5, IV.

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III.

A fantasy sports contest operator shall not offer fantasy sports contests based on the performances of participants in collegiate, high school, or youth athletic events.

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IV.

A fantasy sports contest operator offering fantasy sports contests with an entry fee in this state shall contract with a third party to annually perform an independent audit to confirm compliance with the standards established by the American Institute of Certified Public Accountants, and submit the results of such audit to the commission;

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V.

A fantasy sports contest operator shall not offer a fantasy sports contest to the general public that does not establish and make known all prizes and awards offered to winning participants in advance of the game or contest.

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VI.

A fantasy sports contest operator offering fantasy sports contests with an entry fee in this state shall not target minors or individuals who have requested a restriction.

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VII.

A fantasy sports contest operator offering fantasy sports contests with an entry fee in this state shall:

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(a)

Prohibit the use of scripts in fantasy sports contests that give any fantasy sports contest player an unfair advantage over other fantasy sports contest players;

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(b)

Monitor fantasy sports contests to detect the use of unauthorized scripts and restrict fantasy sports contest players found to have used such scripts from participation in further fantasy sports contests;

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(c)

Make all authorized scripts readily available to all fantasy sports contest players; provided, that a licensed operator shall clearly and conspicuously publish its rules on what types of scripts may be authorized in a fantasy sports contest.

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VIII.

Funds in fantasy sports contest operator consumer accounts shall be:

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(a)

Held in trust for the consumer in a segregated account, in which case the fantasy sports contest operator shall segregate fantasy sports contest player funds from operational funds or maintain a reserve that exceeds the amount of player funds on deposit, which reserve shall not be used for operational activities. These 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 shall exceed the total balances of the fantasy sports contest players' accounts; or

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(b)

Held in a special purpose account that is maintained and controlled by a properly constituted corporate entity that is not the fantasy sports contest operator and whose governing board includes one or more corporate directors who are independent of the fantasy sports contest operator and of any corporation related to or controlled by the fantasy sports contest operator. Said corporate entity shall require a unanimous vote of all corporate directors to file bankruptcy and shall have articles of incorporation that prohibit commingling of funds with those of the fantasy sports contest operator except as necessary to reconcile the accounts of fantasy sports contest players with sums owed by those fantasy sports contest players to the fantasy sports contest operator. Said special purpose corporate entity shall also be:

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(1)

Restricted from incurring debt other than to fantasy sports contest players pursuant to the rules that govern their accounts with fantasy sports contest operators;

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(2)

Restricted from taking on obligations of the fantasy sports contest operator other than obligations to fantasy sports contest players pursuant to the rules that govern their accounts with fantasy sports contest operators; and

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(3)

Prohibited from dissolving, merging, or consolidating with another company, other than a special purpose corporate entity established by another fantasy sports contest operator that meets the requirements of this section, while there are unsatisfied obligations to fantasy sports contest players.

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IX.

Fantasy sports contest operators shall clearly and conspicuously identify highly experienced players in fantasy sports contests by a symbol attached to a player's username, or by other easily visible means. Fantasy sports contest operators shall offer some fantasy sports contests that are open exclusively to beginner players and that exclude highly experienced players. Source. 2017, 247:3, eff. July 18, 2017.

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