CHAPTER Lot 4000 FANTASY SPORTS CONTESTS

PART Lot 4001 PURPOSE AND SCOPE

Lot 4001.01 Purpose. The purpose of this chapter is to establish registration requirements for Fantasy sports contest operators offering fantasy sports contests with an entry fee in the state of New Hampshire.

Source. #12479, eff 2-15-18

Lot 4001.02 Scope.

(a) These rules shall only apply to fantasy sports contests when an entry fee is paid by a player for participation in a fantasy sports contest.

(b) These rules shall not apply to contests where one or more of the following is true:

(1) No prize is awarded other than game-based virtual currency that cannot be redeemed for cash, merchandise or something else that has value outside the context of gameplay;

(2) The contest is free to all participants;

(3) The entity offering the contest receives no compensation in connection with the contest regardless of the outcome of the contest; or

(4) The prize or prizes offered are of no greater value than the lowest individual fee charged to a single participant for entering or participating in the contest.

(c) Nothing in this regulation may be interpreted as authorizing a wager, bet, or gambling activity that is otherwise prohibited by law.

Source. #12479, eff 2-15-18

PART Lot 4002 DEFINITIONS

Lot 4002.01 Definitions.

(a) "Commission" means “commission” as defined in RSA 287-H:1,II, namely “the New Hampshire lottery commission.”

(b) "Entry fee" means “entry fee” as defined in RSA 287-H:1, III, namely “cash or cash equivalent that is required to be paid by a fantasy sports contest player to a fantasy sports contest operator to participate in a fantasy sports contest.”

(c) "Fantasy sports contest" means “fantasy sports contest” as defined in RSA 287-H:1, IV, namely “a fantasy or simulated game or contest in which one or more players compete against each other and winning outcomes reflect the relative knowledge and skill of the players and are determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sporting events.”

(d) "Fantasy sports contest operator" means “fantasy sports contest operator” as defined in RSA 287-H:1, V, namely “a person that offers fantasy sports contests with an entry fee for a cash prize to the general public.”

(e) "Fantasy sports contest player" means “fantasy sports contest player” as defined in RSA 287-H:1, VI, namely “a person who participates in a fantasy sports contest offered by a fantasy sports contest operator.” For the purposes of this chapter, a fantasy sports contest player is presumed to be physically located in New Hampshire.

Source. #12479, eff 2-15-18

PART Lot 4003 REGISTERING AS A FANTASY SPORTS CONTEST OPERATOR

Lot 4003.01 Initial Registration Requirements.

(a) Except as otherwise allows by RSA 287-H:2, I, all fantasy sports contest operators shall register with the commission prior to offering fantasy sports contest in New Hampshire.

(b) In accordance with RSA 287-H:2, I, a fantasy sport contest operator that offered fantasy sports contest in New Hampshire prior to RSA 287-H becoming effective on July 18, 2017, may continue to offer fantasy sports contests with an entry fee in this state, provided such operator completes and files an application for registration with the commission within 60 days of this rule becoming effective. The operator may continue to offer fantasy sports contests until such application for registration has been approved or denied.

(1) A completed “Fantasy Sports Contest Operator Registration Application” form (1/2018);

(2) Documentation from the secretary of state demonstrating that the applicant is authorized to transact business in the state of New Hampshire;

(3) Documentation from the New Hampshire department of revenue administration demonstrating that the applicant is in good standing with the department;

(4) The following documentation necessary for the commission to obtain the criminal convictions record of the applicant, or, if the applicant is a business entity, the criminal convictions records of all principal salaried executive officers:

a. A completed and notarized NH state police Criminal Records Release Authorization Form obtained from the commission authorizing the release of the applicant’s criminal history record;

b. A complete set of fingerprints taken by a qualified law enforcement agency, as follows:

1. If fingerprints are captured via ink impressions, the FBI FD-258 fingerprint card issued by the NH state police; or

2. If fingerprints are digital captured via a LiveScan device, a copy of the LiveScan receipt; and

(5) Payment of the criminal history record, payable to the “State of NH – Criminal Records” and in the amount established by the NH state police;

(6) A copy of the annual third party audit required by RSA 287-H:3, IV which was prepared by a certified public accountant, consistent with the attestation standards established by the American Institute of Certified Public Accountants, of the fantasy sports operator’s financial operations and handling of player accounts and funds; and

(7) Copies of all procedures that have been implemented to:

a. Prevent the sharing of confidential information that could affect such fantasy sports contest play with third parties until the information is made publicly available;

b. Provide that no winning outcome is based on the score, point spread, or any performance of any single actual sports team or combination of such teams or solely on any single performance of the individual athlete or participant in any single actual spring event;

c. Prohibit and prevent the following people from participating in any fantasy sports contest offered by the applicant:

1. Athletes and individuals who participate or officiate in a game or competition that is the subject of the fantasy sports contest;

2. Any sports agent, team employee, referee, or league official associated with the sports or athletic event that is the subject of the fantasy sports contest; and

3. Individuals under the age of 18 years of age;

d. Verify the age and identity of players seeking to establish accounts;

e. Provide fantasy sports contest players with access to information relative to:

1. The player’s play history and account details; and

2. Information on reasonable play, and assistance for compulsive behavior;

f. Allow individuals to restrict themselves from entering such contests upon request and provide reasonable steps to prevent the individual from entering such contests offered by the fantasy sports contest operator;

g. Disclose the number of entries that a fantasy sports contest player may submit to each such fantasy sports contest, and provide reasonable steps to prevent players from submitting more than the allowable number;

h. Prohibit advertising or running promotional activities at elementary, secondary schools, or college campuses, and the targeting of minors or individuals who have requested a restriction per f. above;

i. Monitor for and prohibit the use of unauthorized scripts, in accordance with RSA 287-H:3,VII; and

j. Prohibit and prevent employees from participating in fantasy sports contests where a prize is offered to the public.

(d) If at any time, the information provided in accordance with (b) above changes, or is otherwise found to be inaccurate, the applicant shall submit updated or corrected information to the commission within 15 days of the event that resulted in the change, or discovery of the inaccuracy.

Source. #12479, eff 2-15-18

Lot 4003.02 Registration Renewal Requirements.

(a) Any fantasy sports contest operator seeking to renew its registration shall submit updated and current copies of all of the documents required by Lot 4003.01 above to the commission no later than 45 days prior to the expiration of its current license.

(b) If at any time the information provided in accordance with (a) above changes, or is otherwise found to be inaccurate, the applicant shall submit updated or corrected information to the commission within 15 days of the event that resulted in the change, or discovery of the inaccuracy.

Source. #12479, eff 2-15-18

Lot 4003.03 Registration Approvals and Denials.

(a) The commission shall review each application received and either approve or deny the application within 30 days of receipt of a fully completed application, as determined by the commission.

(b) The commission shall approve an application and issue a registration when:

(1) The application form is complete, including the submission of all supporting documentation required by Lot 4003.01(c)(2)-(6);

(2) The information provided on the application and on all supporting documentation is current and accurate;

(3) The applicant is authorized to transact business in the state of New Hampshire;

(4) The applicant is in good standing with the New Hampshire department of revenue administration;

(5) The applicant, including any principal salaried executive officers in the case of a business entity, has not been convicted, or plead guilty or nolo contendere to any crimes involving a gambling, breach of trust, falsehood, dishonesty, fraud, theft or financial crimes within 10 year prior of the date of the application when such acts are deemed a felony, or within 5 years of the date of the application when such acts are deemed a misdemeanor;

(6) The applicant has demonstrated compliance with the standards established by the American Institute of Certified Public Accountants, as required by RSA 287-H:3, IV;

(7) The applicant established and implemented commercially reasonable consumer protections procedures for fantasy sports contests, as required by RSA 287-H:3, I and described in Lot 4003.01(c)(6);

(8) The applicant has provided assurances that consumer funds will be held in segregated or special purpose accounts, in accordance with RSA 287-H:3, VIII;

(9) The applicant has provided assurances that it will identify highly experienced players and will offer some fantasy sports contests that are open exclusively to beginner players, in accordance with RSA 287-H:3, IX;

(10) The applicant has not made materially false statements in the application or in any documentation that was submitted as part of the application; and

(11) The applicant otherwise meets the qualifications for licensure as specified in RSA 287-H or this chapter.

(1) The application form is not complete, or not all of the required documentation have been included with the submittal;

(2) The information provided on the application or on any of the supporting documentation is not current or is inaccurate;

(3) The applicant is not authorized to transact business in the state of New Hampshire;

(4) The applicant is not in good standing with the New Hampshire department of revenue administration;

(5) The criminal records indicates that the applicant, including any principal salaried executive officers in the case of a business entity, has been convicted, or plead guilty or nolo contendere for a felony, breach of trust, gambling, or moral turpitude, within the 10 years prior to the date of the application, or a misdemeanor involving falsehood or dishonesty within the previous 5 years;

(6) The third party audit required by RSA 287-H:3, IV(b) fails to confirm the applicant’s compliance with the standards established by the American Institute of Certified Public Accountants;

(7) The applicant has failed to establish or implement commercially reasonable consumer protection procedures for fantasy sport contests, as required by RSA 287-H:3, I and described in Lot 4003.01(c)(6);

(8) The applicant has not provided assurances that consumer funds will be held in segregated or special purpose accounts, in accordance with RSA 287-H:3, VIII;

(9) The applicant has not provided assurances that it will identify highly experienced players and will offer some fantasy sports contests that are open exclusively to beginner players, in accordance with RSA 287-H:3, IX;

(10) The applicant has made materially false statements in the application or in any documentation that was submitted as part of the application; or

(11) The applicant does not otherwise met the qualifications for licensure as specified in RSA 287-H or this chapter.

(d) Each registration issued shall be valid for a period of one year from the effective date of the license.

(e) An organization shall immediately notify the commission in the event that it no longer meets the qualifications for licensure as set forth in RSA 287-H and this chapter.

Source. #12479, eff 2-15-18

Rule	Specific State Statute the Rule Implements

Lot 4001	RSA 287-H
Lot 4002	RSA 287-H:1
Lot 4003	RSA 287-H:2 & RSA 287-H:3