S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6022
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 25, 2025
                                ___________
 
 Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
   tee on Racing and Wagering
 
 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. Section 1401 of the racing, pari-mutuel wagering and breed-
 ing law, as added by chapter 237 of the laws of 2016, is amended to read
 as follows:
   § 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06892-01-5
              

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   (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.] 2. "Interactive fantasy sports contest" or "contest" shall mean  a
 game of skill wherein [one] TWO or more contestants compete against each
 other,  INCLUDING CONTESTS WHEREIN PARTICIPANTS SELECT WHETHER ATHLETES,
 IN THE CASE OF SPORTING EVENTS, SHALL ACCUMULATE MORE  OR  LESS  THAN  A
 TARGET  SCORE  SET  BY  AN OPERATOR, by using [their] SUCH PARTICIPANT'S
 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
 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.] 3. "TARGET SCORE" SHALL MEAN A NUMERICAL FIGURE ESTABLISHED BY AN
 OPERATOR THAT IS DERIVED FROM A SINGLE ATHLETE'S ACCUMULATED STATISTICS,
 MULTIPLE STATISTICS OR A FANTASY  SCORE,  AND  FOR  WHICH  A  CONTESTANT
 CHOOSES  WHETHER AN IDENTIFIED INSTANCE OR STATISTICAL ACHIEVEMENT SHALL
 OR SHALL NOT OCCUR, SHALL BE ACHIEVED, OR SHALL BE SURPASSED. USE  OF  A
 TARGET  SCORE  SHALL  BE AN INTERACTIVE FANTASY SPORTS CONTEST THAT DOES
 NOT RENDER SUCH A CONTEST AS SPORTS WAGERING, AS SUCH TERM IS DEFINED IN
 PARAGRAPH (X) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN
 OF THIS CHAPTER, PROVIDED THE SCORING CRITERIA IS OFFERED  BY  A  REGIS-
 TRANT AS PART OF A PEER-TO-PEER INTERACTIVE FANTASY SPORTS CONTEST.
   4.  (A) "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 plat-
 form.
   [11.] (B) AN OPERATOR SHALL NOT BE CONSIDERED AN  INTERACTIVE  FANTASY
 SPORTS CONTEST CONTESTANT BY VIRTUE OF DOING ANY OF THE FOLLOWING:
   (I) SETTING HOUSE RULES FOR A CONTEST;
   (II)  ASSIGNING  A  SALARY  OR TARGET SCORE TO ANY ELIGIBLE ATHLETE OR
 PLAYER;
   (III) ACCEPTING AN ENTRY FEE FROM A FANTASY CONTEST PARTICIPANT; OR
   (IV) AWARDING OR DISBURSING PRIZES.
   5. "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.] 6. "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.
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   14.]  7.  "AUTHORIZED PLAYER" OR "CONTESTANT" SHALL MEAN AN INDIVIDUAL
 LOCATED IN THE STATE OF NEW YORK, WHO IS NOT A PROHIBITED  PLAYER,  THAT
 PARTICIPATES  IN  AN  INTERACTIVE  FANTASY  SPORTS  CONTEST OFFERED BY A
 REGISTRANT AND IS AT LEAST TWENTY-ONE YEARS OF AGE.
   8.  "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.
   9. "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.
   10. "Prohibited player" shall mean:
   (a) any member, officer, employee or agent of an  operator  or  regis-
 trant;
   (b) any spouse, child, [brother, sister] SIBLING 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.] 11. "MINOR" SHALL MEAN ANY PERSON UNDER THE  AGE  OF  TWENTY-ONE
 YEARS.
   12.  "Prohibited  sports  event"  shall  mean  any collegiate sport or
 athletic event, any high school sport or athletic  event  or  any  horse
 racing event.
   [16.]  13.  "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.]
   14.  "INTERACTIVE  FANTASY SPORTS GROSS REVENUE" SHALL MEAN THE AMOUNT
 EQUAL TO THE TOTAL OF ALL ENTRY FEES NOT ATTRIBUTABLE TO NEW YORK  STATE
 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 ITEM OF VALUE AWARDED AS A
 PRIZE.
   § 2. Section 1402 of the racing,  pari-mutuel  wagering  and  breeding
 law,  as added by chapter 237 of the laws of 2016, is amended to read as
 follows:
   § 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
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 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
 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]  FIVE  years.  The  commission  shall  establish  a  process for
 renewal. THE RENEWAL FEE FOR ALL INTERACTIVE FANTASY SPORTS  REGISTRANTS
 SHALL  BE  ONE  PERCENT OF INTERACTIVE FANTASY SPORTS GROSS REVENUES FOR
 THE PRECEDING PERIOD OF REGISTRATION.
   3. THE INITIAL REGISTRATION FEE  FOR  AN  INTERACTIVE  FANTASY  SPORTS
 OPERATOR SHALL BE FIVE MILLION DOLLARS.
   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.]
   §  3.  The  opening  paragraph of subdivision 4 of section 1403 of the
 racing, pari-mutuel wagering and breeding law, as added by  chapter  237
 of the laws of 2016, is amended to read as follows:
   Upon  receipt  of criminal history information pursuant to subdivision
 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] SUCH PROSPECTIVE APPLICANT'S right to  seek  correction  of  any
 incorrect  information  contained  in  such criminal history information
 pursuant to the regulations and procedures established by  the  division
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 of criminal justice services. The commission [shall] MAY deny any appli-
 cation  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:
   § 4. Paragraphs (o) and (q) of subdivision 1 of section  1404  of  the
 racing,  pari-mutuel  wagering and breeding law, as added by chapter 237
 of the laws of 2016, are amended to read as follows:
   (o) ensure all winning outcomes reflect  the  relative  knowledge  and
 skill  of  the  authorized [players] CONTESTANTS and shall be determined
 predominantly by ONE OR MORE  accumulated  statistical  results  of  the
 performance of individuals in sports events;
   (q)  ensure no winning outcome shall be based solely on [any] A single
 performance of an individual athlete  in  a  single  sport  or  athletic
 event; and
   § 5. Section 1405 of the racing, pari-mutuel wagering and breeding law
 is  amended  by  adding  four  new subdivisions 3, 4, 5 and 6 to read as
 follows:
   3. THE PROVISIONS OF THIS CHAPTER  SHALL  BE  CONSTRUED  LIBERALLY  TO
 PROMOTE  THE  GENERAL WELFARE OF THE PUBLIC AND INTEGRITY OF THE FANTASY
 SPORTS INDUSTRY. HOWEVER, THE COMMISSION MAY NOT ADOPT RULES LIMITING OR
 REGULATING THE RULES OR  ADMINISTRATION  OF  AN  INDIVIDUAL  INTERACTIVE
 FANTASY  CONTEST,  THE  STATISTICAL  MAKEUP OF A FANTASY CONTEST, OR THE
 DIGITAL PLATFORM OF A FANTASY CONTEST OPERATOR. FURTHER, THE  COMMISSION
 MAY  NOT  IN  ANY  WAY  LIMIT  OR RESTRICT THE TYPES OF FANTASY CONTESTS
 ALLOWED PURSUANT TO THIS ARTICLE,  BY  LABELING  ANY  SUCH  CONTESTS  AS
 SPORTS  WAGERING AS SUCH TERM IS DEFINED IN PARAGRAPH (X) OF SUBDIVISION
 ONE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS CHAPTER.
   4. THE COMMISSION SHALL VERIFY  THAT  OPERATORS  DEPLOY  IDENTITY  AND
 GEOLOCATION  VERIFICATION  PROCEDURES,  WHICH  MAY  REQUIRE THE USE OF A
 REPUTABLE, INDEPENDENT THIRD-PARTY THAT IS IN THE BUSINESS OF  VERIFYING
 AN  INDIVIDUAL'S  PERSONALLY  IDENTIFIABLE  INFORMATION  AND  CAN DETECT
 POTENTIAL PROHIBITED PARTICIPANTS.
   5. THE COMMISSION SHALL VERIFY THAT  OPERATORS  EMPLOY  MECHANISMS  ON
 SUCH  OPERATOR'S  PLATFORM THAT ARE DESIGNED TO DETECT AND PREVENT UNAU-
 THORIZED ACCOUNTS, AND TO DETECT AND PREVENT  FRAUD,  MONEY  LAUNDERING,
 AND COLLUSION.
   6. WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS SUBDI-
 VISION,  THE  COMMISSION  SHALL  REVIEW  AND  REVISE ITS CURRENT FANTASY
 SPORTS RULES AND REGULATIONS, AS SET FORTH IN 9  NYCRR  §§  5600-5613.4,
 AND  PROMULGATE  ANY NEEDED NEW RULES IN ORDER TO EFFECTUATE AND ENFORCE
 ALL PROVISIONS OF THIS ARTICLE.
   § 6. The opening paragraph of subdivision 1 of  section  1406  of  the
 racing,  pari-mutuel  wagering and breeding law, as added by chapter 237
 of the laws of 2016, is amended to read as follows:
   Each [registrant] OPERATOR 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:
   § 7. Section 1408 of the racing,  pari-mutuel  wagering  and  breeding
 law,  as added by chapter 237 of the laws of 2016, is amended to read as
 follows:
   § 1408. Additional regulatory costs. The commission may assess annual-
 ly, in arrears, on each [registrant] OPERATOR proportional to the inter-
 active fantasy sports gross revenue of such registrant in the  preceding
 year  compared to the aggregate interactive fantasy sports gross revenue
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 of all registrants in the preceding year actual costs necessary to regu-
 late in accordance with the provisions of this article. Such assessments
 shall be made only within amounts appropriated therefor.
   § 8. This act shall take effect immediately.