§ 1404. Required safeguards, minimum standards. 1. As a condition of
registration in New York state, each operator and registrant shall
implement the following measures:

(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
participated 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
advertisements 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
registrant'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
criminal 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
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
reasonable steps to prevent authorized players from submitting more than
the allowable number of entries per contest. The commission shall
promulgate 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,
operators and registrants shall not directly or indirectly promote or
advertise 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
participating 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
cheating, 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
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.