S T A T E O F N E W Y O R K
________________________________________________________________________
6793--A
I N S E N A T E
February 23, 2016
___________
Introduced by Sens. BONACIC, AVELLA, RANZENHOFER -- read twice and
ordered printed, and when printed to be committed to the Committee on
Racing, Gaming and Wagering -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to interactive fantasy sports
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 15 to read as follows:
ARTICLE 15
INTERACTIVE FANTASY SPORTS
SECTION 1500. LEGISLATIVE FINDINGS AND PURPOSE.
1501. DEFINITIONS.
1502. REGISTRATION.
1503. REQUIRED SAFEGUARDS/MINIMUM STANDARDS.
1504. SCOPE OF REGISTRATION REVIEW.
1505. STATE TAX.
S 1500. LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE HEREBY FINDS
AND DECLARES THAT:
1. UNDER THE NEW YORK PENAL LAW A PERSON ENGAGES IN GAMBLING WHEN HE
OR SHE STAKES OR RISKS SOMETHING OF VALUE UPON THE OUTCOME OF A CONTEST
OF CHANCE OR A FUTURE CONTINGENT EVENT NOT UNDER HIS OR HER CONTROL OR
INFLUENCE, UPON AN AGREEMENT OR UNDERSTANDING THAT HE OR SHE WILL
RECEIVE SOMETHING OF VALUE IN THE EVENT OF A CERTAIN OUTCOME;
2. INTERACTIVE FANTASY SPORTS IN MANY INSTANCES HAVE BEEN DEFINED AS A
GAME OF SKILL AND WERE EXEMPTED FROM THE DEFINITION OF UNLAWFUL INTERNET
GAMBLING UNDER THE UNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT OF 2006
(31 U.S.C. S 5362);
3. INTERACTIVE FANTASY SPORTS CONSIST OF FANTASY OR SIMULATION SPORTS
GAMES OR EDUCATIONAL GAMES OR CONTESTS IN WHICH THE FANTASY OR SIMU-
LATION 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14229-03-6
S. 6793--A 2
AS GAMES OF SKILL, INTERACTIVE FANTASY SPORTS CONTESTS DO NOT FALL UNDER
THE DEFINITION OF GAMBLING AS PROHIBITED BY THE PENAL LAW; AND
4. 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 1501. DEFINITIONS. AS USED IN THIS ARTICLE THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "COLLEGIATE SPORT OR ATHLETIC EVENT" MEANS 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.
2. "COMMISSION" MEANS THE NEW YORK STATE GAMING COMMISSION.
3. "ENTRY FEE" MEANS CASH OR CASH EQUIVALENT THAT IS REQUIRED TO BE
PAID BY A FANTASY CONTEST PLAYER TO A REGISTRANT TO PARTICIPATE IN A
FANTASY CONTEST.
4. "HORSE RACING EVENT" MEANS ANY ATHLETIC OR SPORTING EVENT CONDUCTED
IN NEW YORK STATE SUBJECT TO THE PROVISIONS OF THIS CHAPTER, OR ANY
ATHLETIC OR SPORTING EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH IF
CONDUCTED IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS
CHAPTER.
5. "INTERACTIVE FANTASY SPORTS" MEANS ANY FANTASY OR SIMULATED GAME OR
CONTEST WITH AN ENTRY FEE, IN WHICH:
(A) THE VALUE OF ALL PRIZES AND AWARDS OFFERED TO WINNING PARTICIPANTS
ARE ESTABLISHED AND MADE KNOWN TO THE PARTICIPANTS IN ADVANCE OF THE
CONTEST AND SUCH VALUE IS NOT DETERMINED BY THE NUMBER OF PARTICIPANTS
OR THE AMOUNT OF ANY FEES PAID BY THOSE PARTICIPANTS;
(B) ALL WINNING OUTCOMES REFLECT THE RELATIVE KNOWLEDGE AND SKILL OF
THE PARTICIPANTS AND SHALL BE DETERMINED PREDOMINANTLY BY ACCUMULATED
STATISTICAL RESULTS OF THE PERFORMANCE OF INDIVIDUALS, INCLUDING
ATHLETES IN THE CASE OF SPORTS EVENTS; AND
(C) NO WINNING OUTCOME IS BASED ON THE SCORE, POINT SPREAD, OR ANY
PERFORMANCE OR PERFORMANCES OF ANY SINGLE ACTUAL TEAM OR COMBINATION OF
SUCH TEAMS OR SOLELY ON ANY SINGLE PERFORMANCE OF AN INDIVIDUAL ATHLETE
OR PLAYER IN ANY SINGLE ACTUAL EVENT.
NO INTERACTIVE FANTASY SPORTS GAME OR CONTEST SHALL BE OFFERED INVOLV-
ING FANTASY OR SIMULATION SPORTS TEAMS BASED UPON A PROHIBITED SPORTS
EVENT.
6. "INTERACTIVE FANTASY SPORTS GROSS REVENUE" MEANS THE TOTAL OF ALL
ENTRY FEES PAID TO A REGISTRANT FROM INTERACTIVE FANTASY SPORTS INVOLV-
ING AUTHORIZED PARTICIPANTS, LESS ONLY THE TOTAL OF ALL CASH, CASH
EQUIVALENTS, AND PROMOTIONAL FANTASY SPORTS CREDITS PAID OUT TO PATRONS.
7. "INTERACTIVE FANTASY SPORTS PLATFORM" MEANS THE COMBINATION OF
HARDWARE, SOFTWARE AND DATA NETWORKS USED TO MANAGE, ADMINISTER OR
CONTROL ENTRY FEES ON INTERACTIVE FANTASY SPORTS OR THE CONTESTS WITH
WHICH THOSE ENTRY FEES ARE ASSOCIATED.
8. "INTERNET" MEANS A COMPUTER NETWORK OF INTEROPERABLE
PACKET-SWITCHED DATA NETWORKS.
9. "REGISTRANT" MEANS A PERSON WHO IS REGISTERED BY THE COMMISSION TO
OFFER INTERACTIVE FANTASY SPORTS, USING AN INTERACTIVE FANTASY SPORTS
PLATFORM TO AUTHORIZED PARTICIPANTS. A REGISTRANT MAY UTILIZE MULTIPLE
INTERACTIVE FANTASY SPORTS PLATFORMS PROVIDED THAT PLATFORMS USED SOLELY
S. 6793--A 3
TO PROVIDE DAILY INTERACTIVE FANTASY SPORTS CONTESTS FOR AN ENTRY FEE
ARE APPROVED BY THE COMMISSION.
10. "NONCOMMERCIAL CONTEST OPERATOR" MEANS A PERSON OR ENTITY WHO
ORGANIZES AND CONDUCTS AN INTERACTIVE FANTASY SPORTS CONTEST, OR WHO
MAKES AVAILABLE AN INTERACTIVE FANTASY SPORTS PLATFORM, WHEREBY CONTEST
PARTICIPANTS MAY BE CHARGED ENTRY FEES FOR THE RIGHT TO PARTICIPATE
THEREIN AND THE ENTRY FEES ARE COLLECTED, MAINTAINED AND DISTRIBUTED BY
THE SAME PERSON OR ENTITY, PROVIDED ALL ENTRY FEES ARE RETURNED TO THE
PLAYERS IN THE FORM OF PRIZES OR OTHER EQUIVALENT.
11. "PROHIBITED PARTICIPANTS" MEANS: EMPLOYEES OF INTERACTIVE FANTASY
SPORTS REGISTRANTS; OR INDIVIDUALS WHO HAVE ACCESS TO NON-PUBLIC CONFI-
DENTIAL INFORMATION ABOUT INTERACTIVE FANTASY SPORTS CONTESTS; OR ANY
PROFESSIONAL OR AMATEUR ATHLETE WHOSE PERFORMANCE MAY BE USED TO DETER-
MINE THE OUTCOME OF A FANTASY SPORTS CONTEST; OR ANY SPORTS AGENT, TEAM
EMPLOYEE, REFEREE, OR LEAGUE OFFICIAL ASSOCIATED WITH ANY SPORT UTILIZED
FOR INTERACTIVE FANTASY SPORTS CONTESTS; OR INDIVIDUALS IN STATES WHERE
THE CONDUCT OF INTERACTIVE FANTASY SPORTS IS PROHIBITED.
12. "PROHIBITED SPORTS EVENT" MEANS ANY COLLEGIATE SPORT OR ATHLETIC
EVENT OR ANY HORSE RACING EVENT.
13. "SEASON-LONG FANTASY SPORTS CONTEST" MEANS A FANTASY SPORTS
CONTEST OFFERED BY A FANTASY SPORTS CONTEST OPERATOR THAT IS CONDUCTED
OVER AN ENTIRE SPORTS SEASON WHERE THE ENTRY FEE IS PAID PRIOR TO THE
START OF THE SEASON.
S 1502. REGISTRATION. 1. THE COMMISSION SHALL, WITHIN ONE HUNDRED
EIGHTY DAYS OF THE DATE THIS ARTICLE BECOMES LAW, PROMULGATE REGULATIONS
TO IMPLEMENT INTERACTIVE FANTASY SPORTS THAT REQUIRE AN ENTRY FEE IN
THIS STATE AND SHALL REGISTER ENTITIES TO OPERATE INTERACTIVE FANTASY
SPORTS WITH AN ENTRY FEE INVOLVING AUTHORIZED PARTICIPANTS, SUBJECT TO
THE PROVISIONS OF THIS ARTICLE AND OTHER APPLICABLE PROVISIONS OF LAW.
THE COMMISSION SHALL PROMULGATE EMERGENCY REGULATIONS TO IMPLEMENT
INTERACTIVE FANTASY SPORTS SUBJECT TO THE PROVISIONS OF THIS ARTICLE
WITHIN FORTY-FIVE DAYS OF THE DATE THIS ARTICLE BECOMES LAW. THE COMMIS-
SION SHALL PROMULGATE REGULATIONS TO PROTECT CONSUMERS WHO PLAY INTERAC-
TIVE FANTASY SPORTS AND SUCH REGULATIONS SHALL INCLUDE, BUT ARE NOT
LIMITED TO, RESPONSIBLE PLAY PROTECTIONS WITH REGARD TO PROBLEM GAMING.
THIS ARTICLE AND ALL RULES ADOPTED UNDER THE AUTHORITY OF THIS ARTICLE
SHALL ONLY APPLY TO INTERACTIVE FANTASY SPORTS CONTESTS WHEN AN ENTRY
FEE IS PAID BY A FANTASY SPORTS PLAYER AT THE TIME OF ENTRY FOR PARTIC-
IPATION IN AN INTERACTIVE FANTASY SPORTS CONTEST, AND SHALL NOT APPLY TO
SEASON-LONG FANTASY SPORTS CONTESTS.
2. NO PERSON, OTHER THAN A NONCOMMERCIAL CONTEST OPERATOR, MAY OPER-
ATE, MANAGE OR MAKE AVAILABLE AN INTERACTIVE FANTASY SPORTS PLATFORM
THAT IS OFFERED TO PERSONS LOCATED IN THIS STATE UNLESS REGISTERED BY
THE COMMISSION PURSUANT TO THIS ARTICLE. ONLY INTERACTIVE FANTASY
SPORTS PLATFORMS WHICH SOLELY OFFER CONTESTS WITH AN ENTRY FEE MUST BE
REGISTERED WITH THE DIVISION. HOWEVER, AN ENTITY THAT WAS OFFERING
INTERACTIVE FANTASY SPORTS CONTESTS TO NEW YORK RESIDENTS PRIOR TO
NOVEMBER TENTH, TWO THOUSAND FIFTEEN, MAY CONTINUE TO OFFER THE SAME
CONTESTS TO NEW YORK RESIDENTS UNTIL THEIR APPLICATION FOR REGISTRATION
HAS BEEN APPROVED OR DENIED, UNLESS SUCH ENTITY FAILS TO FILE AN APPLI-
CATION FOR REGISTRATION WITH THE COMMISSION WITHIN NINETY DAYS OF THE
ISSUANCE OF EMERGENCY REGULATION PURSUANT TO SUBDIVISION ONE OF THIS
SECTION.
3. THE COMMISSION SHALL REQUIRE ALL REGISTRANTS WITH AT LEAST FIVE
THOUSAND CUSTOMERS IN NEW YORK TO PAY A ONE-TIME FEE OF THE LESSER OF
FIVE HUNDRED THOUSAND DOLLARS OR FIVE PERCENT OF THE INTERACTIVE FANTASY
S. 6793--A 4
SPORTS GROSS REVENUE GENERATED FROM NEW YORK PARTICIPANTS IN THE PREVI-
OUS TWELVE MONTHS.
4. REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR
TEN YEARS.
5. THE COMMISSION MAY DELEGATE ITS RESPONSIBILITIES TO ADMINISTER THE
PROVISIONS OF THIS ARTICLE TO THE DIVISION OF GAMING, ESTABLISHED UNDER
PARAGRAPH (C) OF SUBDIVISION TWO OF SECTION ONE HUNDRED THREE OF THIS
CHAPTER. THE COMMISSION MAY NOT DELEGATE ITS RESPONSIBILITIES TO APPROVE
REGISTRATIONS.
6. NOTHING CONTAINED IN ARTICLE TWO HUNDRED TWENTY-FIVE OF THE PENAL
LAW SHALL BE APPLICABLE TO AN INTERACTIVE FANTASY SPORTS CONTEST OFFERED
BY A REGISTRANT IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, OR TO
AN INTERACTIVE FANTASY SPORTS CONTEST WITH AN ENTRY FEE, OR SEASON-LONG
INTERACTIVE FANTASY SPORTS CONTEST.
S 1503. REQUIRED SAFEGUARDS/MINIMUM STANDARDS. THE DIVISION SHALL
REQUIRE REGISTRANTS TO IMPLEMENT THE FOLLOWING MEASURES FOR INTERACTIVE
FANTASY SPORTS WITH AN ENTRY FEE THAT ARE INTENDED TO DO THE FOLLOWING:
1. PREVENT EMPLOYEES OF THE REGISTRANT, AND RELATIVES LIVING IN THE
SAME HOUSEHOLD AS SUCH EMPLOYEES, FROM COMPETING IN ANY SUCH PUBLIC
FANTASY SPORTS CONTEST.
2. PROHIBIT THE REGISTRANT FROM BEING A CONTEST PARTICIPANT IN SUCH A
FANTASY SPORTS CONTEST THAT HE OR SHE OFFERS.
3. PREVENT THE EMPLOYEES OR AGENTS OF THE REGISTRANT FROM SHARING
CONFIDENTIAL INFORMATION THAT COULD AFFECT SUCH FANTASY SPORTS PLAY WITH
THIRD PARTIES UNTIL THE INFORMATION IS MADE PUBLICLY AVAILABLE.
4. VERIFY THAT CONTEST PARTICIPANT IS EIGHTEEN YEARS OF AGE OR OLDER
THROUGH THE USE OF A COMMERCIALLY AVAILABLE DATABASE OR AGGREGATE OF
DATABASES THAT IS REGULARLY USED FOR THE PURPOSE OF AGE AND IDENTITY
VERIFICATION AND AUTHENTICATION.
5. RESTRICT AN INDIVIDUAL WHO IS A PLAYER, GAME OFFICIAL, COACH, OR
OTHER PARTICIPANT IN A REAL-WORLD GAME OR COMPETITION FROM PARTICIPATING
IN SUCH A FANTASY SPORTS CONTEST THAT IS DETERMINED IN WHOLE OR IN PART
ON THE PERFORMANCE OF THAT INDIVIDUAL, THE INDIVIDUAL'S REAL-WORLD TEAM,
OR THE ACCUMULATED STATISTICAL RESULTS OF THE SPORT OR COMPETITION IN
WHICH HE OR SHE IS A PLAYER, GAME OFFICIAL, OR OTHER PARTICIPANT.
6. ALLOW INDIVIDUALS TO RESTRICT OR PREVENT THEIR OWN ACCESS TO SUCH A
FANTASY SPORTS CONTEST AND TAKE REASONABLE STEPS TO PREVENT THOSE INDI-
VIDUALS FROM ENTERING A FANTASY SPORTS CONTEST.
7. DISCLOSE THE NUMBER OF ENTRIES A SINGLE FANTASY SPORTS CONTEST
PLAYER MAY SUBMIT TO EACH SUCH FANTASY SPORTS CONTEST AND TAKE REASON-
ABLE STEPS TO PREVENT PLAYERS FROM SUBMITTING MORE THAN THE ALLOWABLE
NUMBER.
8. ENSURE PARTICIPANTS' FUNDS ARE HELD IN ACCOUNTS SEGREGATED FROM THE
FUNDS OF REGISTRANTS AND OTHERWISE PROTECTED FROM CORPORATE INSOLVENCY,
FINANCIAL RISK OR CRIMINAL OR CIVIL ACTIONS AGAINST THE REGISTRANT.
9. PROTECT THE PRIVACY AND ONLINE SECURITY OF PARTICIPANTS IN SUCH
INTERACTIVE FANTASY SPORTS.
10. ENSURE THE FAIRNESS AND HONESTY OF SUCH INTERACTIVE FANTASY SPORTS
AND THAT APPROPRIATE MEASURES ARE IN PLACE TO DETER, DETECT AND, TO THE
EXTENT REASONABLY POSSIBLE, TO PREVENT CHEATING, INCLUDING COLLUSION,
AND USE OF CHEATING DEVICES, INCLUDING USE OF SOFTWARE PROGRAMS (SOME-
TIMES REFERRED TO AS "BOTS" OR "SCRIPTS") THAT PLACE ENTRY FEES OR
ADJUST THE PLAYERS SELECTED BY A FANTASY SPORTS PARTICIPANT.
11. PREVENT PROHIBITED PARTICIPANTS FROM MAINTAINING ACCOUNTS OR
ENTERING INTERACTIVE FANTASY SPORTS CONTESTS OFFERED BY A REGISTRANT.
S. 6793--A 5
12. MINIMIZE COMPULSIVE PARTICIPATION IN SUCH INTERACTIVE FANTASY
SPORTS CONTESTS AND PROVIDE NOTICE TO PARTICIPANTS OF RESOURCES AVAIL-
ABLE TO HELP COMPULSIVE PARTICIPATION IN FANTASY SPORTS CONTESTS.
13. DISCLOSE THE MAXIMUM NUMBER OF CONTEST PARTICIPANTS FOR EACH SUCH
FANTASY SPORTS CONTEST AND ENSURE THAT NO MORE THAN THE MAXIMUM NUMBER
OF CONTEST PARTICIPANTS ACTUALLY PARTICIPATE IN SUCH FANTASY SPORTS
CONTEST.
14. OFFER ALL CONTEST PARTICIPANTS ACCESS TO HIS OR HER PLAYER HISTORY
AND ACCOUNT DETAILS.
15. ACCURATELY REPRESENT THE FREQUENCY OR EXTENT OF WINNING, AND NOT
TARGET EXCLUDED PARTICIPANTS OR MINORS IN ADVERTISING FOR INTERACTIVE
FANTASY SPORTS CONTESTS.
S 1504. SCOPE OF REGISTRATION REVIEW. 1. THE DIVISION SHALL REQUIRE
THAT EACH APPLICANT, OTHER THAN NONCOMMERCIAL CONTEST OPERATORS, SUBMIT
AN APPLICATION SETTING FORTH THE FOLLOWING, UNLESS SUCH INFORMATION CAN
BE SATISFIED BY, OR FOUND IN, PUBLIC RECORDS OR FILINGS:
(A) THE FULL NAME OF THE APPLICANT.
(B) IF A CORPORATION, THE NAME OF THE STATE IN WHICH INCORPORATED AND
THE NAMES AND ADDRESSES OF THE OFFICERS, DIRECTORS, AND SHAREHOLDERS
HOLDING FIFTEEN PERCENT OR MORE EQUITY OR, IF A BUSINESS ENTITY OTHER
THAN A CORPORATION, THE NAMES AND ADDRESSES OF THE PRINCIPALS, PARTNERS,
OR SHAREHOLDERS HOLDING FIVE PERCENT OR MORE EQUITY.
(C) THE NAMES AND ADDRESSES OF THE ULTIMATE EQUITABLE OWNERS FOR A
CORPORATION OR OTHER BUSINESS ENTITY, IF DIFFERENT FROM THOSE PROVIDED
UNDER PARAGRAPH (B), UNLESS THE SECURITIES OF THE CORPORATION OR ENTITY
ARE REGISTERED PURSUANT TO S 12 OF THE SECURITIES EXCHANGE ACT OF 1934,
15 U.S.C. SS 78A-78KK; AND IF SUCH CORPORATION OR ENTITY FILES WITH THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION THE REPORTS REQUIRED BY
S 13 OF THAT ACT OR IF THE SECURITIES OF THE CORPORATION OR ENTITY ARE
REGULARLY TRADED ON AN ESTABLISHED SECURITIES MARKET IN THE UNITED
STATES.
(D) THE ESTIMATED NUMBER OF INTERACTIVE FANTASY SPORTS CONTESTS TO BE
CONDUCTED ANNUALLY.
(E) A STATEMENT OF THE ASSETS AND LIABILITIES OF THE APPLICANT.
2. THE COMMISSION MAY REQUIRE THE NAMES AND ADDRESSES OF THE OFFICERS
AND DIRECTORS OF ANY CREDITOR OF THE APPLICANT, AND OF THOSE STOCKHOLD-
ERS WHO HOLD MORE THAN FIFTEEN PERCENT OF THE STOCK OF THE CREDITOR.
3. FOR EACH INDIVIDUAL LISTED IN THE APPLICATION AS AN OFFICER OR
DIRECTOR, A COMPLETE SET OF FINGERPRINTS THAT HAS BEEN TAKEN BY AN
AUTHORIZED LAW ENFORCEMENT OFFICER. THESE SETS OF FINGERPRINTS MUST BE
SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR PROCESSING. FOREIGN
NATIONALS SHALL SUBMIT SUCH DOCUMENTS AS NECESSARY TO ALLOW THE COMMIS-
SION TO CONDUCT CRIMINAL HISTORY RECORDS CHECKS IN THE INDIVIDUAL'S HOME
COUNTRY. THE APPLICANT MUST PAY THE COST OF PROCESSING.
4. (A) A PERSON OR ENTITY IS NOT ELIGIBLE FOR REGISTRATION AS A
CONTEST OPERATOR OR THE RENEWAL OF A LICENSE IF THE PERSON OR AN OFFICER
OR DIRECTOR OF THE ENTITY HAS BEEN CONVICTED OF A FELONY IN THIS STATE,
A FELONY IN ANY OTHER STATE WHICH WOULD BE A FELONY IF COMMITTED IN THIS
STATE UNDER THE LAWS OF THIS STATE, OR A FELONY UNDER THE LAWS OF THE
UNITED STATES, OR IF THE APPLICANT FOR SUCH REGISTRATION HAS BEEN
CONVICTED OF A FELONY OR MISDEMEANOR IN THIS STATE, IN ANY OTHER STATE,
OR UNDER THE LAWS OF THE UNITED STATES, IF SUCH FELONY OR MISDEMEANOR IS
RELATED TO GAMBLING OR BOOKMAKING.
(B) THE TERM "CONVICTED" MEANS HAVING BEEN FOUND GUILTY, WITH OR WITH-
OUT ADJUDICATION OF GUILT, AS A RESULT OF A JURY VERDICT, NONJURY TRIAL,
OR ENTRY OF A PLEA OF GUILTY OR NOLO CONTENDERE.
S. 6793--A 6
5. THE CONTEST OPERATOR SHALL PROVIDE EVIDENCE OF A SURETY BOND IN THE
AMOUNT OF ONE MILLION DOLLARS, PAYABLE TO THE STATE, FURNISHED BY A
CORPORATE SURETY AUTHORIZED TO DO BUSINESS IN THE STATE IN SUCH A FORM
AS ESTABLISHED BY COMMISSION RULE. SUCH BOND SHALL BE KEPT IN FULL FORCE
AND EFFECT BY THE CONTEST OPERATOR DURING THE TERM OF THE LICENSE AND
ANY RENEWAL THEREOF.
S 1505. STATE TAX. REGISTRANTS ENGAGED IN THE BUSINESS OF CONDUCTING
INTERACTIVE FANTASY SPORTS PURSUANT TO THIS ARTICLE SHALL PAY A PRIVI-
LEGE TAX, BASED ON THE REGISTRANT'S PERCENTAGE OF ANNUAL INTERACTIVE
FANTASY SPORTS GROSS REVENUE GENERATED FROM NEW YORK PARTICIPANTS, AT A
FIFTEEN PERCENT RATE.
S 2. This act shall take effect immediately, however, an entity that
was offering interactive fantasy sports contests to New York residents
prior to November 10, 2015, may continue to offer interactive fantasy
sports contests to New York residents until their application for regis-
tration has been approved or denied, unless such entity fails to file an
application with the commission within ninety days of the issuance of
emergency regulations pursuant to article 15 of the racing, pari-mutuel
wagering and breeding law, as added by section one of this act.
