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S08128 Summary:

BILL NOS08128
 
SAME ASSAME AS A10473-A
 
SPONSORBONACIC
 
COSPNSR
 
MLTSPNSR
 
Add Art 14 1400 - 1407, amd 104, RWB L
 
Relates to the registration and regulation of interactive fantasy sports contests; requires all operators to register in New York state.
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S08128 Memo:

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S08128 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8128
 
                    IN SENATE
 
                                      June 13, 2016
                                       ___________
 
        Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
          relation  to  the  registration  and regulation of interactive fantasy
          sports contests
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
     2  amended by adding a new article 14 to read as follows:
     3                                 ARTICLE 14
     4                         INTERACTIVE FANTASY SPORTS
     5  Section 1400. Legislative findings and purpose.
     6          1401. Definitions.
     7          1402. Registration.
     8          1403. Scope of registration review.
     9          1404. Required safeguards, minimum standards.
    10          1405. Powers and duties of the commission.
    11          1406. Annual report.
    12          1407. State tax.
    13    § 1400. Legislative findings and purpose. 1.  The  legislature  hereby
    14  finds and declares that:
    15    (a)  Under the New York penal law a person engages in gambling when he
    16  or she stakes or risks something of value upon the outcome of a  contest
    17  of  chance  or a future contingent event not under his or her control or
    18  influence, upon an agreement  or  understanding  that  he  or  she  will
    19  receive something of value in the event of a certain outcome;
    20    (b)  Interactive fantasy sports in many instances have been defined as
    21  a game of skill and were exempted from the definition of unlawful inter-
    22  net gambling under the Unlawful Internet  Gambling  Enforcement  Act  of
    23  2006 (31 U.S.C. § 5362);
    24    (c)  Interactive  fantasy  sports  are  a  game  of skill because they
    25  consist of fantasy or simulation sports games or contests in  which  the
    26  fantasy or simulation sports teams are selected based upon the skill and
    27  knowledge of the participants and not based on the current membership of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15598-06-6

        S. 8128                             2
 
     1  an  actual  team  that  is a member of an amateur or professional sports
     2  organization;
     3    (d) Interactive fantasy sports contests do not constitute a wager on a
     4  future contingent event not under the contestant's control or influence.
     5  Participants have control over which players they choose and the outcome
     6  of  each contest is not dependent upon the performance of any one player
     7  or any one actual team. The outcome of any fantasy sports  contest  does
     8  not  correspond  to  the outcome of any one sporting event. Instead, the
     9  outcome depends on how the performances of participants' fantasy  roster
    10  choices compare to the performance of others' roster choices.
    11    2.  Based  on  the  findings  in  subdivision one of this section, the
    12  legislature declares that interactive fantasy sports do  not  constitute
    13  gambling  and  therefore  are  not  prohibited by the penal law. Specif-
    14  ically, as games of skill, and given  the  influence  that  participants
    15  have  over  the outcome, interactive fantasy sports contests do not fall
    16  under the definition of gambling in section 225.00 of the penal law.
    17    3. The legislature further finds that as the internet  has  become  an
    18  integral part of society, and interactive fantasy sports a major form of
    19  entertainment   for  many  consumers,  any  interactive  fantasy  sports
    20  enforcement and regulatory structure must begin from the bedrock premise
    21  that participation in a lawful and licensed interactive  fantasy  sports
    22  industry  is  a privilege and not a right, and that regulatory oversight
    23  is intended to safeguard the integrity of the games and participants and
    24  to ensure accountability and the public trust.
    25    § 1401. Definitions. As used in  this  article,  the  following  terms
    26  shall have the following meanings:
    27    1.  "Authorized  player"  shall mean an individual located in New York
    28  state, who is not a prohibited player, that participates in an  interac-
    29  tive fantasy sports contest offered by a registrant.
    30    2. "Collegiate sport or athletic event" shall mean a sport or athletic
    31  event  offered  or sponsored by or played in connection with a public or
    32  private institution that offers education services beyond the  secondary
    33  level.
    34    3. "Commission" shall mean the New York state gaming commission.
    35    4.  "Entry  fee" shall mean cash or cash equivalent that is paid by an
    36  authorized player to an operator or  registrant  to  participate  in  an
    37  interactive  fantasy  sports  contest offered by such operator or regis-
    38  trant.
    39    5. "High school sport or athletic event" shall mean a sport or athlet-
    40  ic event offered or sponsored by or played in connection with  a  public
    41  or  private  institution that offers education services at the secondary
    42  level.
    43    6. "Highly experienced player" shall mean  an  authorized  player  who
    44  has:
    45    (a) entered more than one thousand contests offered by a single opera-
    46  tor or registrant; or
    47    (b)  won more than three prizes valued at one thousand dollars or more
    48  from a single operator or registrant; and
    49    (c) once an authorized player is classified as  a  highly  experienced
    50  player, such player shall remain classified as such.
    51    7.  "Horse  racing  event"  shall  mean  any  sport  or athletic event
    52  conducted in New York state subject to the provisions of  this  chapter,
    53  or  any  sport  or  athletic  event conducted outside of New York state,
    54  which if conducted in New York state would be subject to the  provisions
    55  of this chapter.

        S. 8128                             3
 
     1    8.  "Interactive  fantasy  sports contest" or "contest" shall mean any
     2  online fantasy or simulation sports game or contest offered by an opera-
     3  tor or registrant in which an authorized player pays an  entry  fee  and
     4  manages a fantasy or simulation sports team composed of athletes from an
     5  amateur  or professional sports organization and which meets the follow-
     6  ing conditions:
     7    (a) the value of any prizes and awards offered to  authorized  players
     8  shall  be  established  and made known to such players in advance of the
     9  contest, and such value shall not be determined by the number of author-
    10  ized players or the amount of any entry fees paid by such players;
    11    (b) all winning outcomes reflect the relative knowledge and  skill  of
    12  the  authorized players and shall be determined predominantly by accumu-
    13  lated statistical results of the performance of  individuals,  including
    14  athletes in the case of sports events;
    15    (c)  no  winning outcome shall be based on the score, point spread, or
    16  performance of a single sports team, or any combination of such teams;
    17    (d) no winning outcome shall be based solely on any single performance
    18  of an individual athlete in a single sport or athletic event; and
    19    (e) no game or contest shall be based on a prohibited sports event.
    20    9. "Interactive fantasy sports revenue" shall mean the amount equal to
    21  the total of all entry fees that a registrant collects from all players,
    22  less the total of all sums paid out as winnings to all  players,  multi-
    23  plied  by the resident percentage for New York state; provided, however,
    24  that the total of all sums paid out as winnings  to  players  shall  not
    25  include  the  cash equivalent value of any merchandise or thing of value
    26  awarded as a prize. The issuance to or participation by authorized play-
    27  ers of an interactive fantasy sports contest of any  promotional  gaming
    28  credit  shall not be taxable for the purposes of determining interactive
    29  fantasy sports revenue.
    30    10. "Interactive fantasy sports operator" or "operator" shall mean any
    31  person or entity that offers any interactive fantasy sports  contest  to
    32  any authorized player through any interactive fantasy sports platform.
    33    11. "Interactive fantasy sports platform" or "platform" shall mean the
    34  combination  of  hardware,  software,  and data networks used to manage,
    35  administer, or control contests and any associated entry fees.
    36    12. "Interactive fantasy sports registrant" or "registrant" shall mean
    37  an operator that is registered  by  the  commission.  A  registrant  may
    38  utilize multiple interactive fantasy sports platforms and offer multiple
    39  contests, provided that each platform and each contest has been reviewed
    40  and approved by the commission.
    41    13. "Minor" shall mean any person under the age of eighteen years.
    42    14. "Prohibited player" shall mean:
    43    (a)  any  member,  officer, employee or agent of an operator or regis-
    44  trant;
    45    (b) any spouse, child, brother, sister or parent residing as a  member
    46  of  the  same  household  in the principal place of abode of any member,
    47  officer, employee or agent of an operator or registrant;
    48    (c) any individual with access to non-public confidential  information
    49  about contests;
    50    (d)  any amateur or professional athlete whose performance may be used
    51  to determine the outcome of a contest;
    52    (e) any sports agent, team employee, referee, or league official asso-
    53  ciated with any sport or athletic event on which contests are based;
    54    (f) any individual located in a state where the conduct of contests is
    55  expressly prohibited; or
    56    (g) any minor.

        S. 8128                             4
 
     1    15. "Prohibited sports event"  shall  mean  any  collegiate  sport  or
     2  athletic  event,  any  high school sport or athletic event, or any horse
     3  racing event.
     4    16.  "Resident  percentage"  shall  mean, for each interactive fantasy
     5  sports contest, the percentage,  rounded  to  the  nearest  tenth  of  a
     6  percent,  of  the total entry fees collected from players located in New
     7  York state, divided by the total entry fees collected from  all  players
     8  in the interactive fantasy sports contest.
     9    17.  "Season-long interactive fantasy sports contest" means any inter-
    10  active fantasy sports contest offered by an operator or registrant  that
    11  is  conducted over an entire sports season where any entry fees are paid
    12  prior to the start of the season.
    13    18. "Sports event" shall mean any amateur  or  professional  sport  or
    14  athletic event, except a prohibited sports event.
    15    §  1402. Registration. 1. (a) No operator shall administer, manage, or
    16  otherwise make available  an  interactive  fantasy  sports  platform  to
    17  persons  located in New York state unless registered with the commission
    18  pursuant to section fourteen hundred three of this article. A registrant
    19  may utilize multiple interactive  fantasy  sports  platforms  and  offer
    20  multiple types of contests, provided that each platform and each type of
    21  contest has been reviewed and approved by the commission.  This article,
    22  and  any  and  all  rules and regulations adopted under the authority of
    23  this article, shall only apply to interactive  fantasy  sports  contests
    24  for which an authorized player pays an entry fee, and shall not apply to
    25  season-long interactive fantasy sports contests.
    26    (b)  Any operator that was offering contests to persons located in New
    27  York state prior to the tenth of November,  two  thousand  fifteen,  may
    28  continue  to  offer  contests to persons located in New York state until
    29  such operator's application for registration has been approved or denied
    30  in accordance with section  fourteen  hundred  three  of  this  article,
    31  provided  that  such operator files an application for registration with
    32  the commission within ninety days of the promulgation of regulations  to
    33  effectuate this article.
    34    2.  The  commission  shall provide a temporary permit to each operator
    35  that was offering contests pursuant to paragraph (b) of subdivision  one
    36  of  this  section  to  allow  such  operator  to  continue to offer such
    37  contests, on a provisional basis, until such operator's application  for
    38  registration  has  been  approved  or  denied in accordance with section
    39  fourteen hundred three of this  article,  provided  that  such  operator
    40  continues  to meet all the requirements in section fourteen hundred four
    41  of this article.
    42    3. The commission shall require each approved  registrant  to  pay  an
    43  initial  registration fee equal to the lesser of one hundred fifty thou-
    44  sand dollars or one and one-half  percent  of  the  interactive  fantasy
    45  sports  revenue  generated  by  such  registrant in the preceding fiscal
    46  year; provided, however, if such approved registrant  did  not  generate
    47  any  interactive  fantasy  sports  revenue in the preceding fiscal year,
    48  such registrant shall not be required to pay an initial registration fee
    49  pursuant to this subdivision.
    50    4. Registrations issued by the commission shall remain in  effect  for
    51  three  years.  The commission shall establish a process for renewal, and
    52  each registrant shall pay a renewal fee  equal  to  the  lesser  of  one
    53  hundred fifty thousand dollars or one and one-half percent of the inter-
    54  active  fantasy  sports  revenue  generated  by  such  registrant in the
    55  preceding fiscal year; provided, however, if  such  approved  registrant
    56  did not generate any interactive fantasy sports revenue in the preceding

        S. 8128                             5
 
     1  fiscal  year, such registrant shall not be required to pay a renewal fee
     2  pursuant to this subdivision.
     3    5. All registration and renewal fees received by the commission pursu-
     4  ant to this section shall be deposited into the general fund.
     5    6.  The commission shall publish a list of all operators registered in
     6  New York state pursuant to this section on the commission's website  for
     7  public use.
     8    7.  The  commission  shall  promulgate  regulations  to  implement the
     9  provisions of this article, including the  development  of  the  initial
    10  form  of  the  application  for  registration.    Such regulations shall
    11  provide for the registration and operation of contests in New York state
    12  and shall include, but not be limited to, responsible  protections  with
    13  regard to compulsive play and safeguards for fair play.
    14    §  1403.  Scope  of  registration  review.  1.  The  commission  shall
    15  prescribe the initial form of the  application  for  registration  which
    16  shall require, but not be limited to:
    17    (a) the full name and principal address of the operator;
    18    (b)  if a corporation, the name of the state in which incorporated and
    19  the full names and addresses of any partner, officer,  director,  share-
    20  holder  holding  ten  percent  or  more  equity,  and ultimate equitable
    21  owners;
    22    (c) if a business entity other than a corporation, the full names  and
    23  addresses of the principals, partners, shareholders holding five percent
    24  or more equity, and ultimate equitable owners;
    25    (d)  whether  such corporation or entity files information and reports
    26  with the United States Securities and Exchange Commission as required by
    27  section thirteen of the Securities Exchange Act of 1934,  15  U.S.C.  §§
    28  78a-78kk;  or  whether  the  securities of the corporation or entity are
    29  regularly traded on an  established  securities  market  in  the  United
    30  States;
    31    (e)  the type and estimated number of contests to be conducted annual-
    32  ly;
    33    (f) a statement of the assets and liabilities of the operator.
    34    2. The commission may require the full  names  and  addresses  of  the
    35  officers  and  directors  of  any creditor of the operator, and of those
    36  stockholders who hold more than ten percent of the stock of  the  credi-
    37  tor.
    38    3. Upon receipt of an application for registration for each individual
    39  listed  on  such  application  as an officer or director, the commission
    40  shall submit to the division of criminal justice services a set of fing-
    41  erprints, and the division of criminal justice services  processing  fee
    42  imposed  pursuant  to subdivision eight-a of section eight hundred thir-
    43  ty-seven of the executive law and any fee imposed by the federal  bureau
    44  of  investigation.  Upon  receipt  of  the fingerprints, the division of
    45  criminal justice services shall promptly forward a set of  the  individ-
    46  ual's  fingerprints  to  the  federal  bureau  of  investigation for the
    47  purpose of a nationwide  criminal  history  record  check  to  determine
    48  whether  such individual has been convicted of a criminal offense in any
    49  state other than New York or in a federal jurisdiction. The division  of
    50  criminal  justice services shall promptly provide the requested criminal
    51  history information to the commission. For the purposes of this section,
    52  the term "criminal history information"  shall  mean  a  record  of  all
    53  convictions  of crimes and any pending criminal charges maintained on an
    54  individual by the division of criminal justice services and the  federal
    55  bureau  of  investigation. All such criminal history information sent to
    56  the commission pursuant to this subdivision shall  be  confidential  and

        S. 8128                             6
 
     1  shall not be published or in any way disclosed to persons other than the
     2  commission, unless otherwise authorized by law.
     3    4.  Upon  receipt of criminal history information pursuant to subdivi-
     4  sion three of this section, the commission shall make a determination to
     5  approve or deny an application for registration; provided, however, that
     6  before making a determination on such application, the commission  shall
     7  provide  the  subject of the record with a copy of such criminal history
     8  information and a copy of article twenty-three-A of the  correction  law
     9  and  inform such prospective applicant seeking to be credentialed of his
    10  or her right to seek correction of any incorrect  information  contained
    11  in  such  criminal  history  information pursuant to the regulations and
    12  procedures established by the division  of  criminal  justice  services.
    13  The  commission shall deny any application for registration, or suspend,
    14  refuse to renew, or revoke any existing registration issued pursuant  to
    15  this  article,  upon the finding that the operator or registrant, or any
    16  partner, officer, director, or shareholder:
    17    (a) has knowingly made a false  statement  of  material  fact  or  has
    18  deliberately  failed to disclose any information required by the commis-
    19  sion;
    20    (b) has had a registration or license to  offer  or  conduct  contests
    21  denied,  suspended,  or  revoked  in any other state or country for just
    22  cause;
    23    (c) has legally defaulted in the payment of any obligation or debt due
    24  to any state or political subdivision; or
    25    (d) has at any time knowingly failed to comply  with  any  requirement
    26  outlined  in  section  fourteen  hundred four of this article, any other
    27  provision of this article, any regulations promulgated by the commission
    28  to effectuate this  article,  or  any  additional  requirements  of  the
    29  commission.
    30    5.  All  determinations  to approve or deny an application pursuant to
    31  this article shall be performed in a manner consistent with  subdivision
    32  sixteen of section two hundred ninety-six of the executive law and arti-
    33  cle  twenty-three-A of the correction law. When the commission denies an
    34  application, the operator shall be afforded notice and the right  to  be
    35  heard  and offer proof in opposition to such determination in accordance
    36  with the regulations of the commission.
    37    § 1404. Required safeguards, minimum standards. 1. As a  condition  of
    38  registration  in  New  York  state,  each  operator and registrant shall
    39  implement the following measures:
    40    (a) limit each authorized player to one active and  continuously  used
    41  account,  and  prevent  prohibited  players from maintaining accounts or
    42  participating in any contest offered by such operator or registrant;
    43    (b) prohibit minors from participating in any contest, which includes:
    44    (i) if a registrant becomes or is made aware that a minor has  partic-
    45  ipated in one of its contests, such registrant shall promptly, within no
    46  more than two business days, refund any deposit received from the minor,
    47  whether  or  not  the  minor  has engaged in or attempted to engage in a
    48  contest; provided, however, that any refund may be offset by any  prizes
    49  already awarded;
    50    (ii)  each  registrant  shall  publish and facilitate parental control
    51  procedures to allow parents or guardians to exclude minors  from  access
    52  to  any  contest or platform.  Such procedures shall include a toll-free
    53  number to call for help in establishing such parental controls; and
    54    (iii) each registrant shall take appropriate steps to confirm that  an
    55  individual opening an account is not a minor.

        S. 8128                             7
 
     1    (c)  when  referencing  the chances or likelihood of winning in adver-
     2  tisements or upon contest entry, make clear and  conspicuous  statements
     3  that  are not inaccurate or misleading concerning the chances of winning
     4  and the number of winners;
     5    (d)  enable authorized players to exclude themselves from contests and
     6  take reasonable steps to prevent such players from  entering  a  contest
     7  from which they have excluded themselves;
     8    (e)  permit  any  authorized  player  to  permanently close an account
     9  registered to such player, on any and all platforms  supported  by  such
    10  operator or registrant, at any time and for any reason;
    11    (f)  offer  introductory procedures for authorized players, that shall
    12  be prominently displayed on the main page of  such  operator  or  regis-
    13  trant's platform, that explain contest play and how to identify a highly
    14  experienced player;
    15    (g) identify all highly experienced players in any contest by a symbol
    16  attached  to  such players' usernames, or by other easily visible means,
    17  on all platforms supported by such operator or registrant;
    18    (h) disclose the number of entries  a  single  authorized  player  may
    19  submit to each contest;
    20    (i)  disclose  the  maximum  number  of total entries allowed for each
    21  contest;
    22    (j) implement measures to protect the privacy and online  security  of
    23  authorized players and their accounts;
    24    (k)  offer all authorized players access to his or her account history
    25  and account details;
    26    (l) ensure authorized players' funds are protected  upon  deposit  and
    27  segregated  from  the operating funds of such operator or registrant and
    28  otherwise protected from corporate insolvency, financial risk, or crimi-
    29  nal or civil actions against such operator or registrant;
    30    (m) list on each website, in a prominent place, information concerning
    31  assistance for compulsive play in New York state, including a  toll-free
    32  number  directing  callers  to  reputable  resources  containing further
    33  information, which shall be free of charge.
    34    2. Each registrant shall restrict the number of entries submitted by a
    35  single authorized player for any contest to a  maximum  of  one  hundred
    36  fifty  entries  per player per contest, or a maximum of three percent of
    37  the total number of entries by all players for any contest, whichever is
    38  less. Registrants shall take  reasonable  steps  to  prevent  authorized
    39  players  from  submitting  more than the allowable number of entries per
    40  contest.
    41    3. (a) Operators shall not directly or indirectly operate, promote, or
    42  advertise any platform or contest to persons located in New  York  state
    43  unless registered pursuant to this article.
    44    (b)  Unless otherwise approved by regulation of the commission, opera-
    45  tors and registrants shall not directly or indirectly promote or  adver-
    46  tise  any  online fantasy or simulation sports games or contests with an
    47  entry fee during the conduct of any online fantasy or simulation  sports
    48  games  or  contests without an entry fee. This paragraph shall not apply
    49  to any operator or registrant that  prohibits  prohibited  players  from
    50  participating  in  online fantasy or simulation sports games or contests
    51  without an entry fee.
    52    4. Registrants shall not offer any contest  based  on  any  prohibited
    53  sports event.
    54    5. Registrants shall not permit any minor or prohibited participant to
    55  enter any contest.

        S. 8128                             8
 
     1    6.  Advertisements  for  contests  and  prizes offered by a registrant
     2  shall not  target  prohibited  participants,  minors,  or  self-excluded
     3  persons.    Representations  or implications about average winnings from
     4  contests shall not be unfair or misleading. Such  representations  shall
     5  include, at a minimum:
     6    (a) the median and mean net winnings of all authorized players partic-
     7  ipating in contests offered by such registrant; and
     8    (b)  the  percentage  of  winnings awarded by the registrant to highly
     9  experienced players participating in contests offered by such registrant
    10  within the preceding calendar year.
    11    7. Registrants shall  prohibit  the  use  of  third-party  scripts  or
    12  scripting programs for any contest and ensure that measures are in place
    13  to  deter, detect and, to the extent reasonably possible, prevent cheat-
    14  ing, including collusion, and the use of cheating devices, including use
    15  of software programs that submit  entry  fees  or  adjust  the  athletes
    16  selected by an authorized player.
    17    8.  Operators  and  registrants  shall develop and prominently display
    18  procedures on the main page of such operator's or registrant's  platform
    19  for  the  filing  of  a  complaint by the authorized player against such
    20  registrant. An initial response shall be given  by  such  registrant  to
    21  such  player  filing  the complaint within forty-eight hours. A complete
    22  response shall be given by such registrant to  such  player  filing  the
    23  complaint  within  ten  business days.   An authorized player may file a
    24  complaint alleging a violation of the provisions of  this  article  with
    25  the commission.
    26    9.  Registrants  shall  maintain  records of all accounts belonging to
    27  authorized players and retain such records for five years from the  date
    28  an account was created.
    29    §  1405.  Powers and duties of the commission. 1. The commission shall
    30  promulgate regulations to implement the provisions of this article. Such
    31  regulations shall provide for the registration and operation of contests
    32  in New York state and shall include, but not be limited to,  responsible
    33  protections with regard to compulsive play and safeguards for fair play.
    34    2.  The  commission  shall  have  the  following powers and duties for
    35  purposes of administering, regulating, and enforcing the  provisions  of
    36  this article:
    37    (a)  all  powers  and  duties assigned by this article, as well as all
    38  powers necessary and proper to fully and effectively execute this  arti-
    39  cle;
    40    (b)  to  approve  and  deny  applications  for registration to conduct
    41  contests in New York state, and to suspend, refuse or renew,  or  revoke
    42  any registration issued to a registrant under this article;
    43    (c) to review and approve each platform and each contest offered by an
    44  operator or registrant;
    45    (d)  to  accept and investigate complaints of any kind from an author-
    46  ized player and attempt to mediate such complaints where appropriate;
    47    (e) to investigate alleged violations of this article;
    48    (f) to initiate proper enforcement proceedings where  such  action  is
    49  deemed by the commission to be necessary or appropriate; and
    50    (g) all powers and duties assigned by this chapter.
    51    §  1406.  Annual  report.  1.  Each registrant shall annually submit a
    52  report to the commission no later than the thirtieth  of  June  of  each
    53  year, which shall include the following information as it shall apply to
    54  accounts held by authorized players located in New York state:

        S. 8128                             9
 
     1    (a) the number of accounts held by authorized players on all platforms
     2  offered  by  the  registrant,  and the number of accounts held by highly
     3  experienced players on all platforms offered by the registrant;
     4    (b)  the  total  number  of  new accounts established in the preceding
     5  year, as well as the total number of accounts permanently closed in  the
     6  preceding year;
     7    (c) the total amount of entry fees received from authorized players;
     8    (d) the total amount of prizes awarded to authorized players;
     9    (e) the total amount of interactive fantasy sports revenue received by
    10  the registrant;
    11    (f)  the  total number of authorized players that requested to exclude
    12  themselves from contests;
    13    (g) any additional information that the commission deems necessary  to
    14  carry out the provisions of this article.
    15    2.  Upon the submission of such annual report, to such extent that the
    16  commission deems it to be in the public interest, the  commission  shall
    17  be  authorized  to  conduct  a financial audit of any registrant, at any
    18  time, to ensure compliance with this article.
    19    3. The commission shall annually publish a report based on the  aggre-
    20  gate information provided by all registrants pursuant to subdivision one
    21  of this section, which shall be published on the commission's website no
    22  later than one hundred eighty days after the deadline for the submission
    23  of individual reports as specified in subdivision one of this section.
    24    § 1407. State tax.  For the privilege of conducting interactive fanta-
    25  sy  sports contests in the state, registrants shall pay a tax equivalent
    26  to fifteen percent of their interactive  fantasy  sports  gross  revenue
    27  generated within the state.
    28    §  2. Section 104 of the racing, pari-mutuel wagering and breeding law
    29  is amended by adding a new subdivision 23 to read as follows:
    30    23. To register and regulate interactive fantasy sports  in  New  York
    31  state.
    32    § 3. This act shall take effect immediately.
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