Assembly Actions - Lowercase Senate Actions - UPPERCASE |
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Aug 03, 2016 | signed chap.237 |
Aug 02, 2016 | delivered to governor |
Jun 17, 2016 | returned to assembly passed senate 3rd reading cal.2014 substituted for s8153 |
Jun 17, 2016 | substituted by a10736 ordered to third reading cal.2014 |
Jun 14, 2016 | referred to rules |
senate Bill S8153
Signed By GovernorRelates to the registration and regulation of interactive fantasy sports contests
Sponsored By
John J. Bonacic
(R, C, IP) 0 Senate District
Archive: Last Bill Status Via A10736 - Signed by Governor
- Introduced
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed by Governor
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Jun 17, 2016 - floor Vote
A107364517floor45Aye17Nay0Absent1Excused0Abstained-
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Floor Vote: Jun 17, 2016
aye (45)- Addabbo
- Akshar
- Avella
- Bonacic
- Boyle
- Breslin
- Comrie
- Croci
- DeFrancisco
- Dilan
- Felder
- Flanagan
- Gallivan
- Gianaris
- Golden
- Griffo
- Hamilton
- Hannon
- Hassell-Thompson
- Kaminsky
- Kennedy
- Lanza
- Larkin
- Latimer
- Martins
- Montgomery
- Murphy
- Nozzolio
- O'Mara
- Ortt
- Panepinto
- Parker
- Peralta
- Perkins
- Ranzenhofer
- Ritchie
- Rivera
- Robach
- Serino
- Serrano
- Seward
- Stavisky
- Valesky
- Venditto
- Young
nay (17)excused (1)
Jun 17, 2016 - Rules committee Vote
S8153110committee11Aye0Nay13Aye with Reservations1Absent0Excused0Abstained-
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Rules Committee Vote: Jun 17, 2016
aye (11)aye wr (13)absent (1)
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S8153 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A10736
- Law Section:
- Racing, Pari-Mutuel Wagering and Breeding Law
- Laws Affected:
- Add Art 14 §§1400 - 1412, amd §104, RWB L
S8153 (ACTIVE) - Sponsor Memo
BILL NUMBER: S8153 TITLE OF BILL : An act to amend the racing, pari-mutuel wagering and breeding law, in relation to the registration and regulation of interactive fantasy sports contests PURPOSE OR GENERAL IDEA OF BILL : To provide for the registration, regulation, and taxation of interactive fantasy sports contests in New York State. SUMMARY OF SPECIFIC PROVISIONS : Section 1 of the bill would amend the Racing, Pari-Mutuel Wagering and Breeding Law by adding a new Article 14 which would register and regulate interactive fantasy sports contests with an entry fee. Specifically: Section 1400 provides legislative findings and purpose. Section 1401 provides definitions. Section 1402 authorizes the registration of interactive fantasy sports operators to conduct interactive fantasy sports contests in New York State. Any operator that was offering contests to New York state residents prior to November 10, 2015 would be able to continue
operating until their application for registration has been approved or denied, provided that such operator files an application for registration with the New York State Gaming Commission ("the Commission") within ninety days of the promulgation of regulations to effectuate this article. Such operators would also receive a temporary permit to operate under the required safeguards and minimum standards until their application has been approved or denied. Registrations would remain in effect for three years. Section 1403 establishes the scope of information required from an interactive fantasy sports operator upon submission of an application for registration to the Commission. Section 1404 establishes required safeguards and minimum standards in order to provide players with important consumer protections, including: *limiting players to one active and continuously used account; *prohibiting persons under the age of 18 from participating in any contest; *ensuring that accurate representations concerning the chances of winning, and the number of winners, are depicted in all advertisements; *ensuring that, unless otherwise approved by the Commission, online fantasy or simulation sports games or contests with an entry fee are not being directly or indirectly promoted or advertised during the conduct of any online fantasy or simulation sports games or contests without an entry fee; *enabling players to exclude themselves from contests and permanently close their accounts at any time; *offering introductory procedures for players, and identifying highly experienced players; *disclosing the number of entries a player may submit to each contest, and the number of total entries allowed for each contest; *measures to protect the privacy and online security of players and their accounts; *ensuring players' funds are protected upon deposit and segregated from the operating funds of the operator or registrant; and *information concerning assistance for compulsive play in New York State. This section would also limit the number of entries that can be submitted by a player to any contest, prohibit any contest based on a collegiate or high school sport or athletic event, prohibit any contest based on a horse racing event, prohibit the use of third-party scripts or scripting programs, and ensure that advertisements for contests and prizes do not target prohibited participants, minors, or self-excluded persons. Section 1405 authorizes the Commission to promulgate regulations to implement the provisions of this article. This section also assigns the Commission with all powers necessary and proper to fully and effectively execute this article, including the ability to accept and investigate complaints from players and investigate alleged violations of this article. Section 1406 requires each registrant to submit an annual report to the Commission no later than June 30 of each year. The Commission would be authorized to conduct a financial audit of any registrant, at any time, to ensure compliance with this article. The Commission would also be required to publish a report based on the aggregate information provided by all registrants' reports, which would be published on the Commission's website. Section 1407 imposes a 15% State tax on each registrant's interactive fantasy sports gross revenue for the privilege of conducting interactive fantasy sports contests in New York State, as well as an additional 0.5% tax that is not to exceed $50,000 annually. Section 1408 allows the Commission to assess the actual costs necessary to regulate registrants pursuant to this article. Section 1409 requires the Commission to direct all taxes, interest, and penalties collected to the State Lottery Fund for education. Section 1410 authorizes the Commission to perform audits of the books and records of operators with permits and registrants, for the purpose of determining the sufficiency of tax payments. Section 1411 provides authorization for interactive fantasy sports contests registered and conducted pursuant to this chapter. Section 1412 prohibits the conduct of unregistered interactive fantasy sports contests. Section 2 of the bill would give the Commission the authority and responsibility of registering and regulating interactive fantasy sports in New York State. Section 3 of the bill would establish an immediate effective date. JUSTIFICATION : On October 6, 2015, the New York State Attorney General's office launched an investigation into whether employees of the two biggest daily fantasy sports companies, DraftKings and FanDuel, were able to gain an unfair financial advantage in daily fantasy football contests by exploiting access to non-public data. On November 10, the Attorney General's office issued a notice to DraftKings and FanDuel demanding that they stop accepting wagers in New York. After months of additional litigation, DraftKings and FanDuel reached an agreement with the Attorney General to stop taking bets from New York customers on March 21, 2016. The agreements outlined the process the companies and the Attorney General would follow in the event that the State Legislature does or does not take action to legalize and regulate daily fantasy sports contests, as well as establish a statutory framework to protect consumers, on or before June 30, 2016. Bearing in mind that "paid" interactive fantasy sports contests have the potential to produce unfair advantages for certain players, target minors, and increase compulsive play, this bill seeks to regulate all interactive fantasy sports contests with an entry fee, including daily and season-long. This bill offers important consumer protections to ensure that all contests are safe and fair. Requirements such as limiting players to one active and continuously used account, offering introductory procedures for players, identifying highly experienced players, and depicting accurate representations concerning the chances of winning in all advertisements will help to provide transparency and fairness across all platforms. Measures to protect the privacy and online security of players and their accounts, and requiring registrants to protect players' funds upon deposit, as well as segregate such funds from the companies' operating funds, would provide players with important safety and security protections online. In addition, requirements would be in place to ensure that players can exclude themselves from contests and permanently close their accounts at any time if they feel that they are becoming compulsive players. For this reason, registrants will also be required to provide information on their websites concerning assistance for compulsive play in New York State. Because of the risks associated with compulsive play, no person under the age of 18 would be permitted to participate in an interactive fantasy sports contest. By taxing interactive fantasy sports contests, and directing such funds to the State Lottery Fund, this bill will also bring about a new and abundant source of revenue for education in New York State. LEGISLATIVE HISTORY : This is new legislation. FISCAL IMPLICATION : To be determined. EFFECTIVE DATE : This act would take effect immediately.
S8153 (ACTIVE) - Bill Text download pdf
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.
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