S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8153

                            I N  S E N A T E

                              June 14, 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:

  Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
amended by adding a new article 14 to read as follows:
                               ARTICLE 14
                       INTERACTIVE FANTASY SPORTS
SECTION 1400. LEGISLATIVE FINDINGS AND PURPOSE.
        1401. DEFINITIONS.
        1402. REGISTRATION.
        1403. SCOPE OF REGISTRATION REVIEW.
        1404. REQUIRED SAFEGUARDS, MINIMUM STANDARDS.
        1405. POWERS AND DUTIES OF THE COMMISSION.
        1406. ANNUAL REPORT.
        1407. STATE TAX.
        1408. ADDITIONAL REGULATORY COSTS.
        1409. DISPOSITION OF TAXES.
        1410. DETERMINATION OF TAX LIABILITY.
        1411. CONTESTS AUTHORIZED.
        1412. CONTESTS PROHIBITED.
  S 1400. LEGISLATIVE FINDINGS AND PURPOSE. 1.  THE  LEGISLATURE  HEREBY
FINDS AND DECLARES THAT:
  (A)  INTERACTIVE  FANTASY  SPORTS ARE NOT GAMES OF CHANCE BECAUSE THEY
CONSIST OF FANTASY OR SIMULATION SPORTS GAMES OR CONTESTS IN  WHICH  THE
FANTASY OR SIMULATION SPORTS TEAMS ARE SELECTED BASED UPON THE SKILL AND
KNOWLEDGE OF THE PARTICIPANTS AND NOT BASED ON THE CURRENT MEMBERSHIP OF
AN  ACTUAL  TEAM  THAT  IS A MEMBER OF AN AMATEUR OR PROFESSIONAL SPORTS
ORGANIZATION;
  (B) INTERACTIVE FANTASY SPORTS  CONTESTS  ARE  NOT  WAGERS  ON  FUTURE
CONTINGENT  EVENTS  NOT  UNDER  THE  CONTESTANTS'  CONTROL  OR INFLUENCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15896-03-6

S. 8153                             2

BECAUSE CONTESTANTS HAVE CONTROL OVER WHICH PLAYERS THEY CHOOSE AND  THE
OUTCOME OF EACH CONTEST IS NOT DEPENDENT UPON THE PERFORMANCE OF ANY ONE
PLAYER OR ANY ONE ACTUAL TEAM. THE OUTCOME OF ANY FANTASY SPORTS CONTEST
DOES  NOT  CORRESPOND TO THE OUTCOME OF ANY ONE SPORTING EVENT. INSTEAD,
THE OUTCOME DEPENDS ON HOW THE  PERFORMANCES  OF  PARTICIPANTS'  FANTASY
ROSTER CHOICES COMPARE TO THE PERFORMANCE OF OTHERS' ROSTER CHOICES.
  2.  BASED  ON  THE  FINDINGS  IN  SUBDIVISION ONE OF THIS SECTION, THE
LEGISLATURE DECLARES THAT INTERACTIVE FANTASY SPORTS DO  NOT  CONSTITUTE
GAMBLING IN NEW YORK STATE AS DEFINED IN ARTICLE TWO HUNDRED TWENTY-FIVE
OF THE PENAL LAW.
  3.  THE  LEGISLATURE  FURTHER FINDS THAT AS THE INTERNET HAS BECOME AN
INTEGRAL PART OF SOCIETY, AND INTERACTIVE FANTASY SPORTS A MAJOR FORM OF
ENTERTAINMENT  FOR  MANY  CONSUMERS,  ANY  INTERACTIVE  FANTASY   SPORTS
ENFORCEMENT AND REGULATORY STRUCTURE MUST BEGIN FROM THE BEDROCK PREMISE
THAT  PARTICIPATION  IN A LAWFUL AND LICENSED INTERACTIVE FANTASY SPORTS
INDUSTRY IS A PRIVILEGE AND NOT A RIGHT, AND THAT  REGULATORY  OVERSIGHT
IS INTENDED TO SAFEGUARD THE INTEGRITY OF THE GAMES AND PARTICIPANTS AND
TO ENSURE ACCOUNTABILITY AND THE PUBLIC TRUST.
  S  1401.  DEFINITIONS.  AS  USED  IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "AUTHORIZED PLAYER" SHALL MEAN AN INDIVIDUAL LOCATED  IN  NEW  YORK
STATE,  WHO IS NOT A PROHIBITED PLAYER, THAT PARTICIPATES IN AN INTERAC-
TIVE FANTASY SPORTS CONTEST OFFERED BY A REGISTRANT.
  2. "COLLEGIATE SPORT OR ATHLETIC EVENT" SHALL MEAN A SPORT OR ATHLETIC
EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A  PUBLIC  OR
PRIVATE  INSTITUTION THAT OFFERS EDUCATION SERVICES BEYOND THE SECONDARY
LEVEL.
  3. "COMMISSION" SHALL MEAN THE NEW YORK STATE GAMING COMMISSION.
  4. "ENTRY FEE" SHALL MEAN CASH OR CASH EQUIVALENT THAT IS PAID  BY  AN
AUTHORIZED  PLAYER  TO  AN  OPERATOR  OR REGISTRANT TO PARTICIPATE IN AN
INTERACTIVE FANTASY SPORTS CONTEST OFFERED BY SUCH  OPERATOR  OR  REGIS-
TRANT.
  5. "HIGH SCHOOL SPORT OR ATHLETIC EVENT" SHALL MEAN A SPORT OR ATHLET-
IC  EVENT  OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC
OR PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES AT  THE  SECONDARY
LEVEL.
  6.  "HIGHLY  EXPERIENCED  PLAYER"  SHALL MEAN AN AUTHORIZED PLAYER WHO
HAS:
  (A) ENTERED MORE THAN ONE THOUSAND CONTESTS OFFERED BY A SINGLE OPERA-
TOR OR REGISTRANT; OR
  (B) WON MORE THAN THREE PRIZES VALUED AT ONE THOUSAND DOLLARS EACH  OR
MORE FROM A SINGLE OPERATOR OR REGISTRANT.
  7.  "HORSE  RACING  EVENT"  SHALL  MEAN  ANY  SPORT  OR ATHLETIC EVENT
CONDUCTED IN NEW YORK STATE SUBJECT TO THE PROVISIONS OF  ARTICLES  TWO,
THREE,  FOUR,  FIVE,  SIX,  NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY
SPORT OR ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK  STATE,  WHICH  IF
CONDUCTED  IN  NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS
CHAPTER.
  8. "INTERACTIVE FANTASY SPORTS CONTEST" OR "CONTEST" SHALL MEAN A GAME
OF SKILL WHEREIN ONE OR MORE CONTESTANTS COMPETE AGAINST EACH  OTHER  BY
USING  THEIR KNOWLEDGE AND UNDERSTANDING OF ATHLETIC EVENTS AND ATHLETES
TO SELECT AND MANAGE ROSTERS  OF  SIMULATED  PLAYERS  WHOSE  PERFORMANCE
DIRECTLY CORRESPONDS WITH THE ACTUAL PERFORMANCE OF HUMAN COMPETITORS ON
SPORTS TEAMS AND IN SPORTS EVENTS.
  9.  "INTERACTIVE  FANTASY  SPORTS GROSS REVENUE" SHALL MEAN THE AMOUNT
EQUAL TO THE TOTAL OF ALL ENTRY FEES NOT ATTRIBUTABLE TO NEW YORK  STATE

S. 8153                             3

PROHIBITED  SPORTS  EVENTS  THAT A REGISTRANT COLLECTS FROM ALL PLAYERS,
LESS THE TOTAL OF ALL SUMS NOT ATTRIBUTABLE TO NEW YORK STATE PROHIBITED
SPORTS EVENTS PAID OUT AS WINNINGS TO ALL  PLAYERS,  MULTIPLIED  BY  THE
RESIDENT  PERCENTAGE  FOR  NEW  YORK  STATE; PROVIDED, HOWEVER, THAT THE
TOTAL OF ALL SUMS PAID OUT AS WINNINGS TO PLAYERS SHALL NOT INCLUDE  THE
CASH  EQUIVALENT VALUE OF ANY MERCHANDISE OR THING OF VALUE AWARDED AS A
PRIZE.
  10. "INTERACTIVE FANTASY SPORTS OPERATOR" OR "OPERATOR" SHALL MEAN ANY
PERSON OR ENTITY THAT OFFERS ANY INTERACTIVE FANTASY SPORTS  CONTEST  TO
ANY AUTHORIZED PLAYER THROUGH ANY INTERACTIVE FANTASY SPORTS PLATFORM.
  11. "INTERACTIVE FANTASY SPORTS PLATFORM" OR "PLATFORM" SHALL MEAN THE
COMBINATION  OF  HARDWARE,  SOFTWARE,  AND DATA NETWORKS USED TO MANAGE,
ADMINISTER, OR CONTROL CONTESTS AND ANY ASSOCIATED ENTRY FEES.
  12. "INTERACTIVE FANTASY SPORTS REGISTRANT" OR "REGISTRANT" SHALL MEAN
AN OPERATOR THAT IS REGISTERED  BY  THE  COMMISSION.  A  REGISTRANT  MAY
UTILIZE MULTIPLE INTERACTIVE FANTASY SPORTS PLATFORMS AND OFFER MULTIPLE
CONTESTS, PROVIDED THAT EACH PLATFORM AND EACH CONTEST HAS BEEN REVIEWED
AND APPROVED BY THE COMMISSION.
  13. "MINOR" SHALL MEAN ANY PERSON UNDER THE AGE OF EIGHTEEN YEARS.
  14. "PROHIBITED PLAYER" SHALL MEAN:
  (A)  ANY  MEMBER,  OFFICER, EMPLOYEE OR AGENT OF AN OPERATOR OR REGIS-
TRANT;
  (B) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A  MEMBER
OF  THE  SAME  HOUSEHOLD  IN THE PRINCIPAL PLACE OF ABODE OF ANY MEMBER,
OFFICER, EMPLOYEE OR AGENT OF AN OPERATOR OR REGISTRANT;
  (C) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC CONFIDENTIAL  INFORMATION
ABOUT CONTESTS;
  (D)  ANY AMATEUR OR PROFESSIONAL ATHLETE WHOSE PERFORMANCE MAY BE USED
TO DETERMINE THE OUTCOME OF A CONTEST;
  (E) ANY SPORTS AGENT, TEAM EMPLOYEE, REFEREE, OR LEAGUE OFFICIAL ASSO-
CIATED WITH ANY SPORT OR ATHLETIC EVENT ON WHICH CONTESTS ARE BASED;
  (F) ANY INDIVIDUAL LOCATED IN A STATE WHERE THE CONDUCT OF CONTESTS IS
EXPRESSLY PROHIBITED; OR
  (G) ANY MINOR.
  15. "PROHIBITED SPORTS EVENT"  SHALL  MEAN  ANY  COLLEGIATE  SPORT  OR
ATHLETIC  EVENT,  ANY  HIGH  SCHOOL SPORT OR ATHLETIC EVENT OR ANY HORSE
RACING EVENT.
  16. "RESIDENT PERCENTAGE" SHALL MEAN,  FOR  EACH  INTERACTIVE  FANTASY
SPORTS  CONTEST,  THE  PERCENTAGE,  ROUNDED  TO  THE  NEAREST TENTH OF A
PERCENT, OF THE TOTAL ENTRY FEES COLLECTED FROM PLAYERS LOCATED  IN  NEW
YORK  STATE,  DIVIDED BY THE TOTAL ENTRY FEES COLLECTED FROM ALL PLAYERS
IN INTERACTIVE FANTASY SPORTS CONTESTS NOT PROHIBITED IN NEW YORK STATE.
  17. "SPORTS EVENT" SHALL MEAN ANY AMATEUR  OR  PROFESSIONAL  SPORT  OR
ATHLETIC EVENT, EXCEPT A PROHIBITED SPORTS EVENT.
  S  1402. REGISTRATION. 1. (A) NO OPERATOR SHALL ADMINISTER, MANAGE, OR
OTHERWISE MAKE AVAILABLE  AN  INTERACTIVE  FANTASY  SPORTS  PLATFORM  TO
PERSONS  LOCATED IN NEW YORK STATE UNLESS REGISTERED WITH THE COMMISSION
PURSUANT TO SECTION FOURTEEN HUNDRED THREE OF THIS ARTICLE. A REGISTRANT
MAY USE MULTIPLE INTERACTIVE FANTASY SPORTS PLATFORMS AND OFFER MULTIPLE
TYPES OF CONTESTS, PROVIDED THAT EACH PLATFORM AND EACH TYPE OF  CONTEST
HAS BEEN REVIEWED AND APPROVED BY THE COMMISSION.  THIS ARTICLE, AND ANY
AND  ALL RULES AND REGULATIONS ADOPTED UNDER THE AUTHORITY OF THIS ARTI-
CLE, SHALL APPLY ONLY TO INTERACTIVE FANTASY SPORTS CONTESTS  FOR  WHICH
AN AUTHORIZED PLAYER PAYS AN ENTRY FEE.
  (B)  ANY OPERATOR THAT WAS OFFERING CONTESTS TO PERSONS LOCATED IN NEW
YORK STATE PRIOR TO THE TENTH OF NOVEMBER,  TWO  THOUSAND  FIFTEEN,  MAY

S. 8153                             4

CONTINUE  TO  OFFER  CONTESTS TO PERSONS LOCATED IN NEW YORK STATE UNTIL
SUCH OPERATOR'S APPLICATION FOR REGISTRATION HAS BEEN APPROVED OR DENIED
IN ACCORDANCE WITH SECTION  FOURTEEN  HUNDRED  THREE  OF  THIS  ARTICLE,
PROVIDED  THAT  SUCH  OPERATOR  RECEIVES  A TEMPORARY PERMIT PURSUANT TO
SUBDIVISION TWO OF THIS SECTION AND FILES AN APPLICATION  FOR  REGISTRA-
TION WITH THE COMMISSION WITHIN NINETY DAYS OF THE PROMULGATION OF REGU-
LATIONS TO EFFECTUATE THIS ARTICLE.
  2.  THE  COMMISSION  SHALL PROVIDE A TEMPORARY PERMIT TO EACH OPERATOR
THAT WAS OFFERING CONTESTS PURSUANT TO PARAGRAPH (B) OF SUBDIVISION  ONE
OF  THIS  SECTION  TO  ALLOW  SUCH  OPERATOR  TO  CONTINUE TO OFFER SUCH
CONTESTS, ON A PROVISIONAL BASIS, UNTIL SUCH OPERATOR'S APPLICATION  FOR
REGISTRATION  HAS  BEEN  APPROVED  OR  DENIED IN ACCORDANCE WITH SECTION
FOURTEEN HUNDRED THREE OF THIS  ARTICLE,  PROVIDED  THAT  SUCH  OPERATOR
MEETS  ALL  THE  REQUIREMENTS  IN  SECTION FOURTEEN HUNDRED FOUR OF THIS
ARTICLE.
  3. REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN  EFFECT  FOR
THREE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL.
  4.  INTERACTIVE  FANTASY  SPORTS  CONTESTS  OFFERED BY A REGISTRANT IN
ACCORDANCE WITH THE PROVISIONS OF  THIS  ARTICLE  SHALL  NOT  CONSTITUTE
GAMBLING AS DEFINED IN ARTICLE TWO HUNDRED TWENTY-FIVE OF THE PENAL LAW.
  5.  THE COMMISSION SHALL PUBLISH A LIST OF ALL OPERATORS REGISTERED IN
NEW YORK STATE PURSUANT TO THIS SECTION ON THE COMMISSION'S WEBSITE  FOR
PUBLIC USE.
  6.  THE  COMMISSION  SHALL  PROMULGATE  REGULATIONS  TO  IMPLEMENT THE
PROVISIONS OF THIS ARTICLE, INCLUDING THE  DEVELOPMENT  OF  THE  INITIAL
FORM  OF  THE  APPLICATION  FOR  REGISTRATION.    SUCH REGULATIONS SHALL
PROVIDE FOR THE REGISTRATION AND OPERATION OF CONTESTS IN NEW YORK STATE
AND SHALL INCLUDE, BUT NOT BE LIMITED TO, RESPONSIBLE  PROTECTIONS  WITH
REGARD TO COMPULSIVE PLAY AND SAFEGUARDS FOR FAIR PLAY.
  S  1403.  SCOPE  OF  REGISTRATION  REVIEW.  1.  THE  COMMISSION  SHALL
PRESCRIBE THE INITIAL FORM OF THE  APPLICATION  FOR  REGISTRATION  WHICH
SHALL REQUIRE, BUT NOT BE LIMITED TO:
  (A) THE FULL NAME AND PRINCIPAL ADDRESS OF THE OPERATOR;
  (B)  IF A CORPORATION, THE NAME OF THE STATE IN WHICH INCORPORATED AND
THE FULL NAMES AND ADDRESSES OF ANY PARTNER, OFFICER,  DIRECTOR,  SHARE-
HOLDER  HOLDING  TEN  PERCENT  OR  MORE  EQUITY,  AND ULTIMATE EQUITABLE
OWNERS;
  (C) IF A BUSINESS ENTITY OTHER THAN A CORPORATION, THE FULL NAMES  AND
ADDRESSES OF THE PRINCIPALS, PARTNERS, SHAREHOLDERS HOLDING FIVE PERCENT
OR MORE EQUITY, AND ULTIMATE EQUITABLE OWNERS;
  (D)  WHETHER  SUCH CORPORATION OR ENTITY FILES INFORMATION AND REPORTS
WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY
SECTION THIRTEEN OF THE SECURITIES EXCHANGE ACT OF 1934,  15  U.S.C.  SS
78A-78KK;  OR  WHETHER  THE  SECURITIES OF THE CORPORATION OR ENTITY ARE
REGULARLY TRADED ON AN  ESTABLISHED  SECURITIES  MARKET  IN  THE  UNITED
STATES;
  (E)  THE TYPE AND ESTIMATED NUMBER OF CONTESTS TO BE CONDUCTED ANNUAL-
LY;
  (F) A STATEMENT OF THE ASSETS AND LIABILITIES OF THE OPERATOR.
  2. THE COMMISSION MAY REQUIRE THE FULL  NAMES  AND  ADDRESSES  OF  THE
OFFICERS  AND  DIRECTORS  OF  ANY CREDITOR OF THE OPERATOR, AND OF THOSE
STOCKHOLDERS WHO HOLD MORE THAN TEN PERCENT OF THE STOCK OF  THE  CREDI-
TOR.
  3. UPON RECEIPT OF AN APPLICATION FOR REGISTRATION FOR EACH INDIVIDUAL
LISTED  ON  SUCH  APPLICATION  AS AN OFFICER OR DIRECTOR, THE COMMISSION
SHALL SUBMIT TO THE DIVISION OF CRIMINAL JUSTICE SERVICES A SET OF FING-

S. 8153                             5

ERPRINTS, AND THE DIVISION OF CRIMINAL JUSTICE SERVICES  PROCESSING  FEE
IMPOSED  PURSUANT  TO SUBDIVISION EIGHT-A OF SECTION EIGHT HUNDRED THIR-
TY-SEVEN OF THE EXECUTIVE LAW AND ANY FEE IMPOSED BY THE FEDERAL  BUREAU
OF  INVESTIGATION.  UPON  RECEIPT  OF  THE FINGERPRINTS, THE DIVISION OF
CRIMINAL JUSTICE SERVICES SHALL PROMPTLY FORWARD A SET OF  THE  INDIVID-
UAL'S  FINGERPRINTS  TO  THE  FEDERAL  BUREAU  OF  INVESTIGATION FOR THE
PURPOSE OF A NATIONWIDE  CRIMINAL  HISTORY  RECORD  CHECK  TO  DETERMINE
WHETHER  SUCH INDIVIDUAL HAS BEEN CONVICTED OF A CRIMINAL OFFENSE IN ANY
STATE OTHER THAN NEW YORK OR IN A FEDERAL JURISDICTION. THE DIVISION  OF
CRIMINAL  JUSTICE SERVICES SHALL PROMPTLY PROVIDE THE REQUESTED CRIMINAL
HISTORY INFORMATION TO THE COMMISSION. FOR THE PURPOSES OF THIS SECTION,
THE TERM "CRIMINAL HISTORY INFORMATION"  SHALL  MEAN  A  RECORD  OF  ALL
CONVICTIONS  OF CRIMES AND ANY PENDING CRIMINAL CHARGES MAINTAINED ON AN
INDIVIDUAL BY THE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE  FEDERAL
BUREAU  OF  INVESTIGATION. ALL SUCH CRIMINAL HISTORY INFORMATION SENT TO
THE COMMISSION PURSUANT TO THIS SUBDIVISION SHALL  BE  CONFIDENTIAL  AND
SHALL NOT BE PUBLISHED OR IN ANY WAY DISCLOSED TO PERSONS OTHER THAN THE
COMMISSION, UNLESS OTHERWISE AUTHORIZED BY LAW.
  4.  UPON  RECEIPT OF CRIMINAL HISTORY INFORMATION PURSUANT TO SUBDIVI-
SION THREE OF THIS SECTION, THE COMMISSION SHALL MAKE A DETERMINATION TO
APPROVE OR DENY AN APPLICATION FOR REGISTRATION; PROVIDED, HOWEVER, THAT
BEFORE MAKING A DETERMINATION ON SUCH APPLICATION, THE COMMISSION  SHALL
PROVIDE  THE  SUBJECT OF THE RECORD WITH A COPY OF SUCH CRIMINAL HISTORY
INFORMATION AND A COPY OF ARTICLE TWENTY-THREE-A OF THE  CORRECTION  LAW
AND  INFORM SUCH PROSPECTIVE APPLICANT SEEKING TO BE CREDENTIALED OF HIS
OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT  INFORMATION  CONTAINED
IN  SUCH  CRIMINAL  HISTORY  INFORMATION PURSUANT TO THE REGULATIONS AND
PROCEDURES ESTABLISHED BY THE DIVISION  OF  CRIMINAL  JUSTICE  SERVICES.
THE  COMMISSION SHALL DENY ANY APPLICATION FOR REGISTRATION, OR SUSPEND,
REFUSE TO RENEW, OR REVOKE ANY EXISTING REGISTRATION ISSUED PURSUANT  TO
THIS  ARTICLE,  UPON THE FINDING THAT THE OPERATOR OR REGISTRANT, OR ANY
PARTNER, OFFICER, DIRECTOR, OR SHAREHOLDER:
  (A) HAS KNOWINGLY MADE A FALSE  STATEMENT  OF  MATERIAL  FACT  OR  HAS
DELIBERATELY  FAILED TO DISCLOSE ANY INFORMATION REQUIRED BY THE COMMIS-
SION;
  (B) HAS HAD A REGISTRATION OR LICENSE TO  OFFER  OR  CONDUCT  CONTESTS
DENIED,  SUSPENDED,  OR  REVOKED  IN ANY OTHER STATE OR COUNTRY FOR JUST
CAUSE;
  (C) HAS LEGALLY DEFAULTED IN THE PAYMENT OF ANY OBLIGATION OR DEBT DUE
TO ANY STATE OR POLITICAL SUBDIVISION; OR
  (D) HAS AT ANY TIME KNOWINGLY FAILED TO COMPLY  WITH  ANY  REQUIREMENT
OUTLINED  IN  SECTION  FOURTEEN  HUNDRED FOUR OF THIS ARTICLE, ANY OTHER
PROVISION OF THIS ARTICLE, ANY REGULATIONS PROMULGATED BY THE COMMISSION
OR ANY ADDITIONAL REQUIREMENTS OF THE COMMISSION.
  5. ALL DETERMINATIONS TO APPROVE OR DENY AN  APPLICATION  PURSUANT  TO
THIS  ARTICLE SHALL BE PERFORMED IN A MANNER CONSISTENT WITH SUBDIVISION
SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI-
CLE TWENTY-THREE-A OF THE CORRECTION LAW. WHEN THE COMMISSION DENIES  AN
APPLICATION,  THE  OPERATOR SHALL BE AFFORDED NOTICE AND THE RIGHT TO BE
HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION IN  ACCORDANCE
WITH THE REGULATIONS OF THE COMMISSION.
  S  1404.  REQUIRED SAFEGUARDS, MINIMUM STANDARDS. 1. AS A CONDITION OF
REGISTRATION IN NEW YORK  STATE,  EACH  OPERATOR  AND  REGISTRANT  SHALL
IMPLEMENT THE FOLLOWING MEASURES:

S. 8153                             6

  (A)  LIMIT  EACH AUTHORIZED PLAYER TO ONE ACTIVE AND CONTINUOUSLY USED
ACCOUNT, AND PREVENT PROHIBITED PLAYERS  FROM  MAINTAINING  ACCOUNTS  OR
PARTICIPATING IN ANY CONTEST OFFERED BY SUCH OPERATOR OR REGISTRANT;
  (B) PROHIBIT MINORS FROM PARTICIPATING IN ANY CONTEST, WHICH INCLUDES:
  (I)  IF A REGISTRANT BECOMES OR IS MADE AWARE THAT A MINOR HAS PARTIC-
IPATED IN ONE OF ITS CONTESTS, SUCH REGISTRANT SHALL PROMPTLY, WITHIN NO
MORE THAN TWO BUSINESS DAYS, REFUND ANY DEPOSIT RECEIVED FROM THE MINOR,
WHETHER OR NOT THE MINOR HAS ENGAGED IN OR  ATTEMPTED  TO  ENGAGE  IN  A
CONTEST;  PROVIDED, HOWEVER, THAT ANY REFUND MAY BE OFFSET BY ANY PRIZES
ALREADY AWARDED;
  (II) EACH REGISTRANT SHALL PUBLISH  AND  FACILITATE  PARENTAL  CONTROL
PROCEDURES  TO  ALLOW PARENTS OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS
TO ANY CONTEST OR PLATFORM.  SUCH PROCEDURES SHALL INCLUDE  A  TOLL-FREE
NUMBER TO CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND
  (III)  EACH REGISTRANT SHALL TAKE APPROPRIATE STEPS TO CONFIRM THAT AN
INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR.
  (C) WHEN REFERENCING THE CHANCES OR LIKELIHOOD OF  WINNING  IN  ADVER-
TISEMENTS  OR  UPON CONTEST ENTRY, MAKE CLEAR AND CONSPICUOUS STATEMENTS
THAT ARE NOT INACCURATE OR MISLEADING CONCERNING THE CHANCES OF  WINNING
AND THE NUMBER OF WINNERS;
  (D)  ENABLE AUTHORIZED PLAYERS TO EXCLUDE THEMSELVES FROM CONTESTS AND
TAKE REASONABLE STEPS TO PREVENT SUCH PLAYERS FROM  ENTERING  A  CONTEST
FROM WHICH THEY HAVE EXCLUDED THEMSELVES;
  (E)  PERMIT  ANY  AUTHORIZED  PLAYER  TO  PERMANENTLY CLOSE AN ACCOUNT
REGISTERED TO SUCH PLAYER, ON ANY AND ALL PLATFORMS  SUPPORTED  BY  SUCH
OPERATOR OR REGISTRANT, AT ANY TIME AND FOR ANY REASON;
  (F)  OFFER  INTRODUCTORY PROCEDURES FOR AUTHORIZED PLAYERS, THAT SHALL
BE PROMINENTLY DISPLAYED ON THE MAIN PAGE OF  SUCH  OPERATOR  OR  REGIS-
TRANT'S PLATFORM, THAT EXPLAIN CONTEST PLAY AND HOW TO IDENTIFY A HIGHLY
EXPERIENCED PLAYER;
  (G) IDENTIFY ALL HIGHLY EXPERIENCED PLAYERS IN ANY CONTEST BY A SYMBOL
ATTACHED  TO  SUCH PLAYERS' USERNAMES, OR BY OTHER EASILY VISIBLE MEANS,
ON ALL PLATFORMS SUPPORTED BY SUCH OPERATOR OR REGISTRANT;
  (H) DISCLOSE THE NUMBER OF ENTRIES  A  SINGLE  AUTHORIZED  PLAYER  MAY
SUBMIT TO EACH CONTEST;
  (I)  DISCLOSE  THE  MAXIMUM  NUMBER  OF TOTAL ENTRIES ALLOWED FOR EACH
CONTEST;
  (J) IMPLEMENT MEASURES TO PROTECT THE PRIVACY AND ONLINE  SECURITY  OF
AUTHORIZED PLAYERS AND THEIR ACCOUNTS;
  (K)  OFFER ALL AUTHORIZED PLAYERS ACCESS TO HIS OR HER ACCOUNT HISTORY
AND ACCOUNT DETAILS;
  (L) ENSURE AUTHORIZED PLAYERS' FUNDS ARE PROTECTED  UPON  DEPOSIT  AND
SEGREGATED  FROM  THE OPERATING FUNDS OF SUCH OPERATOR OR REGISTRANT AND
OTHERWISE PROTECTED FROM CORPORATE INSOLVENCY, FINANCIAL RISK, OR CRIMI-
NAL OR CIVIL ACTIONS AGAINST SUCH OPERATOR OR REGISTRANT;
  (M) LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION CONCERNING
ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A  TOLL-FREE
NUMBER  DIRECTING  CALLERS  TO  REPUTABLE  RESOURCES  CONTAINING FURTHER
INFORMATION, WHICH SHALL BE FREE OF CHARGE;
  (N) ENSURE THE VALUE OF ANY PRIZES AND AWARDS  OFFERED  TO  AUTHORIZED
PLAYERS  SHALL  BE ESTABLISHED AND MADE KNOWN TO SUCH PLAYERS IN ADVANCE
OF THE CONTEST, AND SUCH VALUE SHALL NOT BE DETERMINED BY THE NUMBER  OF
AUTHORIZED PLAYERS OR THE AMOUNT OF ANY ENTRY FEES PAID BY SUCH PLAYERS;
  (O)  ENSURE  ALL  WINNING  OUTCOMES REFLECT THE RELATIVE KNOWLEDGE AND
SKILL OF THE AUTHORIZED PLAYERS AND SHALL BE DETERMINED PREDOMINANTLY BY

S. 8153                             7

ACCUMULATED STATISTICAL RESULTS OF THE  PERFORMANCE  OF  INDIVIDUALS  IN
SPORTS EVENTS;
  (P)  ENSURE  NO  WINNING  OUTCOME  SHALL  BE BASED ON THE SCORE, POINT
SPREAD, OR PERFORMANCE OF A SINGLE SPORTS TEAM, OR  ANY  COMBINATION  OF
SUCH TEAMS;
  (Q)  ENSURE  NO  WINNING  OUTCOME  SHALL BE BASED SOLELY ON ANY SINGLE
PERFORMANCE OF AN INDIVIDUAL ATHLETE  IN  A  SINGLE  SPORT  OR  ATHLETIC
EVENT; AND
  (R)  ENSURE  NO  GAME OR CONTEST SHALL BE BASED ON A PROHIBITED SPORTS
EVENT.
  2. EACH REGISTRANT SHALL RESTRICT THE NUMBER OF ENTRIES SUBMITTED BY A
SINGLE AUTHORIZED PLAYER FOR ANY CONTEST TO A  MAXIMUM  OF  ONE  HUNDRED
FIFTY  ENTRIES  PER PLAYER PER CONTEST, OR A MAXIMUM OF THREE PERCENT OF
THE TOTAL NUMBER OF ENTRIES BY ALL PLAYERS FOR ANY CONTEST, WHICHEVER IS
LESS, OR AS DETERMINED BY THE COMMISSION. REGISTRANTS SHALL TAKE REASON-
ABLE STEPS TO PREVENT AUTHORIZED PLAYERS FROM SUBMITTING MORE  THAN  THE
ALLOWABLE  NUMBER  OF ENTRIES PER CONTEST.  THE COMMISSION SHALL PROMUL-
GATE REGULATIONS TO FURTHER EFFECTUATE THIS SUBDIVISION TO  ENSURE  THAT
THE  NUMBER  OF  ENTRIES SUBMITTED BY A SINGLE AUTHORIZED PLAYER FOR ANY
CONTEST WILL LEAD TO A FAIR AND  EQUITABLE  DISTRIBUTION  OF  NUMBER  OF
ENTRIES.
  3. (A) OPERATORS SHALL NOT DIRECTLY OR INDIRECTLY OPERATE, PROMOTE, OR
ADVERTISE  ANY  PLATFORM OR CONTEST TO PERSONS LOCATED IN NEW YORK STATE
UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
  (B) UNLESS OTHERWISE APPROVED BY REGULATION OF THE COMMISSION,  OPERA-
TORS  AND REGISTRANTS SHALL NOT DIRECTLY OR INDIRECTLY PROMOTE OR ADVER-
TISE ANY ONLINE FANTASY OR SIMULATION SPORTS GAMES OR CONTESTS  WITH  AN
ENTRY  FEE DURING THE CONDUCT OF ANY ONLINE FANTASY OR SIMULATION SPORTS
GAMES OR CONTESTS WITHOUT AN ENTRY FEE. THIS PARAGRAPH SHALL  NOT  APPLY
TO  ANY  OPERATOR  OR  REGISTRANT THAT PROHIBITS PROHIBITED PLAYERS FROM
PARTICIPATING IN ONLINE FANTASY OR SIMULATION SPORTS GAMES  OR  CONTESTS
WITHOUT AN ENTRY FEE.
  4.  REGISTRANTS  SHALL  NOT  OFFER ANY CONTEST BASED ON ANY PROHIBITED
SPORTS EVENT.
  5. REGISTRANTS SHALL NOT PERMIT ANY MINOR OR PROHIBITED PARTICIPANT TO
ENTER ANY CONTEST.
  6. ADVERTISEMENTS FOR CONTESTS AND  PRIZES  OFFERED  BY  A  REGISTRANT
SHALL  NOT  TARGET  PROHIBITED  PARTICIPANTS,  MINORS,  OR SELF-EXCLUDED
PERSONS.  REPRESENTATIONS OR IMPLICATIONS ABOUT  AVERAGE  WINNINGS  FROM
CONTESTS  SHALL  NOT BE UNFAIR OR MISLEADING. SUCH REPRESENTATIONS SHALL
INCLUDE, AT A MINIMUM:
  (A) THE MEDIAN AND MEAN NET WINNINGS OF ALL AUTHORIZED PLAYERS PARTIC-
IPATING IN CONTESTS OFFERED BY SUCH REGISTRANT; AND
  (B) THE PERCENTAGE OF WINNINGS AWARDED BY  THE  REGISTRANT  TO  HIGHLY
EXPERIENCED PLAYERS PARTICIPATING IN CONTESTS OFFERED BY SUCH REGISTRANT
WITHIN THE PRECEDING CALENDAR YEAR.
  7.  REGISTRANTS  SHALL  PROHIBIT  THE  USE  OF  THIRD-PARTY SCRIPTS OR
SCRIPTING PROGRAMS FOR ANY CONTEST AND ENSURE THAT MEASURES ARE IN PLACE
TO DETER, DETECT AND, TO THE EXTENT REASONABLY POSSIBLE, PREVENT  CHEAT-
ING, INCLUDING COLLUSION, AND THE USE OF CHEATING DEVICES, INCLUDING USE
OF  SOFTWARE  PROGRAMS  THAT  SUBMIT  ENTRY  FEES OR ADJUST THE ATHLETES
SELECTED BY AN AUTHORIZED PLAYER.
  8. OPERATORS AND REGISTRANTS SHALL  DEVELOP  AND  PROMINENTLY  DISPLAY
PROCEDURES  ON THE MAIN PAGE OF SUCH OPERATOR'S OR REGISTRANT'S PLATFORM
FOR THE FILING OF A COMPLAINT BY  THE  AUTHORIZED  PLAYER  AGAINST  SUCH
REGISTRANT.  AN  INITIAL  RESPONSE  SHALL BE GIVEN BY SUCH REGISTRANT TO

S. 8153                             8

SUCH PLAYER FILING THE COMPLAINT WITHIN FORTY-EIGHT  HOURS.  A  COMPLETE
RESPONSE  SHALL  BE  GIVEN  BY SUCH REGISTRANT TO SUCH PLAYER FILING THE
COMPLAINT WITHIN TEN BUSINESS DAYS.   AN AUTHORIZED PLAYER  MAY  FILE  A
COMPLAINT  ALLEGING  A  VIOLATION OF THE PROVISIONS OF THIS ARTICLE WITH
THE COMMISSION.
  9. REGISTRANTS SHALL MAINTAIN RECORDS OF  ALL  ACCOUNTS  BELONGING  TO
AUTHORIZED  PLAYERS AND RETAIN SUCH RECORDS FOR FIVE YEARS FROM THE DATE
AN ACCOUNT WAS CREATED.
  S 1405. POWERS AND DUTIES OF THE COMMISSION. 1.  THE COMMISSION  SHALL
PROMULGATE REGULATIONS TO IMPLEMENT THE PROVISIONS OF AND EFFECTUATE THE
POLICY  AND OBJECTIVES OF THIS ARTICLE AS THE COMMISSION MAY DEEM NECES-
SARY OR ADVISABLE, INCLUDING THE DEVELOPMENT OF THE INITIAL FORM OF  THE
APPLICATION  FOR  REGISTRATION.  SUCH  REGULATIONS SHALL PROVIDE FOR THE
REGISTRATION AND OPERATION OF CONTESTS  IN  NEW  YORK  STATE  AND  SHALL
INCLUDE,  WITHOUT  LIMITATION,  RESPONSIBLE  PROTECTIONS  WITH REGARD TO
COMPULSIVE PLAY AND SAFEGUARDS FOR FAIR PLAY. SUCH REGULATIONS MAY REGU-
LATE THE CONDUCT  AND  OPERATION  OF  CONTESTS  AND  PLATFORMS,  PROTECT
CONTESTANTS AND PROMOTE THE FAIRNESS, HONESTY AND INTEGRITY OF CONTESTS.
  2.  THE  COMMISSION  SHALL  HAVE  THE  FOLLOWING POWERS AND DUTIES FOR
PURPOSES OF ADMINISTERING, REGULATING, AND ENFORCING THE  PROVISIONS  OF
THIS ARTICLE:
  (A)  ALL  POWERS  AND  DUTIES ASSIGNED BY THIS ARTICLE, AS WELL AS ALL
POWERS NECESSARY AND PROPER TO FULLY AND EFFECTIVELY EXECUTE THIS  ARTI-
CLE;
  (B)  TO  APPROVE  AND  DENY  APPLICATIONS  FOR REGISTRATION TO CONDUCT
CONTESTS IN NEW YORK STATE, AND TO SUSPEND, REFUSE OR RENEW,  OR  REVOKE
ANY REGISTRATION ISSUED TO A REGISTRANT UNDER THIS ARTICLE;
  (C) TO REVIEW AND APPROVE EACH PLATFORM AND EACH CONTEST OFFERED BY AN
OPERATOR OR REGISTRANT;
  (D)  TO  ACCEPT AND INVESTIGATE COMPLAINTS OF ANY KIND FROM AN AUTHOR-
IZED PLAYER AND ATTEMPT TO MEDIATE SUCH COMPLAINTS WHERE APPROPRIATE;
  (E) TO INVESTIGATE ALLEGED VIOLATIONS OF THIS ARTICLE;
  (F) TO INITIATE PROPER ENFORCEMENT PROCEEDINGS WHERE  SUCH  ACTION  IS
DEEMED BY THE COMMISSION TO BE NECESSARY OR APPROPRIATE; AND
  (G) ALL POWERS AND DUTIES ASSIGNED BY THIS CHAPTER.
  S  1406.  ANNUAL  REPORT.  1.  EACH REGISTRANT SHALL ANNUALLY SUBMIT A
REPORT TO THE COMMISSION NO LATER THAN THE THIRTIETH  OF  JUNE  OF  EACH
YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION AS IT SHALL APPLY TO
ACCOUNTS HELD BY AUTHORIZED PLAYERS LOCATED IN NEW YORK STATE:
  (A) THE NUMBER OF ACCOUNTS HELD BY AUTHORIZED PLAYERS ON ALL PLATFORMS
OFFERED  BY  THE  REGISTRANT,  AND THE NUMBER OF ACCOUNTS HELD BY HIGHLY
EXPERIENCED PLAYERS ON ALL PLATFORMS OFFERED BY THE REGISTRANT;
  (B) THE TOTAL NUMBER OF NEW  ACCOUNTS  ESTABLISHED  IN  THE  PRECEDING
YEAR,  AS WELL AS THE TOTAL NUMBER OF ACCOUNTS PERMANENTLY CLOSED IN THE
PRECEDING YEAR;
  (C) THE TOTAL AMOUNT OF ENTRY FEES RECEIVED FROM AUTHORIZED PLAYERS;
  (D) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED PLAYERS;
  (E) THE TOTAL AMOUNT OF INTERACTIVE FANTASY SPORTS REVENUE RECEIVED BY
THE REGISTRANT;
  (F) THE TOTAL NUMBER OF AUTHORIZED PLAYERS THAT REQUESTED  TO  EXCLUDE
THEMSELVES FROM CONTESTS;
  (G)  ANY ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY TO
CARRY OUT THE PROVISIONS OF THIS ARTICLE.
  2. UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT  THE
COMMISSION  DEEMS  IT TO BE IN THE PUBLIC INTEREST, THE COMMISSION SHALL

S. 8153                             9

BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF  ANY  REGISTRANT,  AT  ANY
TIME, TO ENSURE COMPLIANCE WITH THIS ARTICLE.
  3.  THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
GATE INFORMATION PROVIDED BY ALL REGISTRANTS PURSUANT TO SUBDIVISION ONE
OF THIS SECTION, WHICH SHALL BE PUBLISHED ON THE COMMISSION'S WEBSITE NO
LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DEADLINE FOR THE SUBMISSION
OF INDIVIDUAL REPORTS AS SPECIFIED IN SUBDIVISION ONE OF THIS SECTION.
  S 1407. STATE TAX.  FOR THE PRIVILEGE OF CONDUCTING INTERACTIVE FANTA-
SY SPORTS CONTESTS IN THE STATE, REGISTRANTS SHALL PAY A TAX  EQUIVALENT
TO  FIFTEEN  PERCENT  OF  THEIR INTERACTIVE FANTASY SPORTS GROSS REVENUE
GENERATED WITHIN THE STATE; IN ADDITION, REGISTRANTS  SHALL  PAY  A  TAX
EQUAL  TO  ONE-HALF  OF  ONE  PERCENT,  BUT NOT TO EXCEED FIFTY THOUSAND
DOLLARS ANNUALLY.
  S 1408. ADDITIONAL REGULATORY COSTS. THE COMMISSION MAY ASSESS ANNUAL-
LY, IN ARREARS, ON  EACH  REGISTRANT  PROPORTIONAL  TO  THE  INTERACTIVE
FANTASY  SPORTS  GROSS  REVENUE OF SUCH REGISTRANT IN THE PRECEDING YEAR
COMPARED TO THE AGGREGATE INTERACTIVE FANTASY SPORTS  GROSS  REVENUE  OF
ALL REGISTRANTS IN THE PRECEDING YEAR ACTUAL COSTS NECESSARY TO REGULATE
IN  ACCORDANCE  WITH  THE  PROVISIONS  OF THIS ARTICLE. SUCH ASSESSMENTS
SHALL BE MADE ONLY WITHIN AMOUNTS APPROPRIATED THEREFOR.
  S 1409. DISPOSITION OF TAXES. 1. THE COMMISSION  SHALL  PAY  INTO  THE
STATE  LOTTERY  FUND ALL TAXES IMPOSED BY THIS ARTICLE; ANY INTEREST AND
PENALTIES IMPOSED BY THE COMMISSION RELATING TO THOSE TAXES; ALL  PENAL-
TIES  LEVIED AND COLLECTED BY THE COMMISSION; AND THE APPROPRIATE FUNDS,
CASH OR PRIZES FORFEITED FROM INTERACTIVE FANTASY SPORTS.
  2. THE COMMISSION SHALL REQUIRE  AT  LEAST  MONTHLY  DEPOSITS  BY  THE
INTERACTIVE  FANTASY SPORTS OPERATOR OF ANY PAYMENTS PURSUANT TO SECTION
FOURTEEN HUNDRED SEVEN OF THIS ARTICLE, AT SUCH TIMES, UNDER SUCH CONDI-
TIONS, AND IN SUCH DEPOSITORIES AS SHALL  BE  PRESCRIBED  BY  THE  STATE
COMPTROLLER.  THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE STATE
LOTTERY FUND. THE COMMISSION SHALL REQUIRE A MONTHLY REPORT  AND  RECON-
CILIATION  STATEMENT  TO  BE FILED WITH IT ON OR BEFORE THE TENTH DAY OF
EACH MONTH, WITH RESPECT TO GROSS REVENUES  AND  DEPOSITS  RECEIVED  AND
MADE, RESPECTIVELY, DURING THE PRECEDING MONTH.
  S  1410.  DETERMINATION  OF  TAX LIABILITY. THE COMMISSION MAY PERFORM
AUDITS OF THE BOOKS AND RECORDS OF AN INTERACTIVE FANTASY SPORTS  OPERA-
TOR WITH A PERMIT OR REGISTRANT, AT SUCH TIMES AND INTERVALS AS IT DEEMS
APPROPRIATE,  FOR  THE  PURPOSE  OF  DETERMINING  THE SUFFICIENCY OF TAX
PAYMENTS. IF A RETURN REQUIRED WITH REGARD TO OBLIGATIONS IMPOSED IS NOT
FILED, OR IF A RETURN WHEN FILED OR IS DETERMINED BY THE  COMMISSION  TO
BE INCORRECT OR INSUFFICIENT WITH OR WITHOUT AN AUDIT, THE AMOUNT OF TAX
DUE  SHALL BE DETERMINED BY THE COMMISSION. NOTICE OF SUCH DETERMINATION
SHALL BE GIVEN TO THE INTERACTIVE FANTASY SPORTS OPERATOR LIABLE FOR THE
PAYMENT OF THE TAX. SUCH DETERMINATION SHALL FINALLY AND IRREVOCABLY FIX
THE TAX UNLESS THE PERSON AGAINST WHOM IT  IS  ASSESSED,  WITHIN  THIRTY
DAYS  AFTER  RECEIVING  NOTICE OF SUCH DETERMINATION, SHALL APPLY TO THE
COMMISSION FOR A HEARING IN  ACCORDANCE  WITH  THE  REGULATIONS  OF  THE
COMMISSION.
  S  1411.  CONTESTS  AUTHORIZED.  INTERACTIVE  FANTASY  SPORTS CONTESTS
REGISTERED AND CONDUCTED PURSUANT TO THE PROVISIONS OF THIS CHAPTER  ARE
HEREBY AUTHORIZED.
  S  1412.  CONTESTS PROHIBITED. THE CONDUCT OF UNREGISTERED INTERACTIVE
FANTASY SPORTS CONTESTS IS PROHIBITED.
  S 2. Section 104 of the racing, pari-mutuel wagering and breeding  law
is amended by adding a new subdivision 23 to read as follows:

S. 8153                            10

  23.  TO  REGISTER  AND REGULATE INTERACTIVE FANTASY SPORTS IN NEW YORK
STATE.
  S 3. This act shall take effect immediately.