4 Pa.C.S. Ch. 3

4 Pa.C.S. Ch. 3
in effect

4 Pa.C.S. § 302 Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Applicant." A person who, on his own behalf or on behalf of another, is applying for permission to engage in any act or activity which is regulated under the provisions of this chapter. If the applicant is a person other than an individual, the board shall determine the associated persons whose qualifications are necessary as a precondition to the licensing of the applicant. "Beginner." A participant who has entered fewer than 51 contests offered by a single licensed operator or who does not meet the definition of a highly experienced player. "Board." The Pennsylvania Gaming Control Board. "Bureau." The Bureau of Investigations and Enforcement of the board. "Conduct of gaming." As defined in section 1103 (relating to definitions). "Controlling interest." Either of the following: (1) For a publicly traded domestic or foreign corporation, partnership, limited liability company or other form of publicly traded legal entity, a controlling interest is an interest if a person's sole voting rights under State law or corporate articles or bylaws entitle the person to elect or appoint one or more of the members of the board of directors or other governing board or the ownership or beneficial holding of 5% or more of the securities of the publicly traded corporation, partnership, limited liability company or other form of publicly traded legal entity, unless this presumption of control or ability to elect is rebutted by clear and convincing evidence. (2) For a privately held domestic or foreign corporation, partnership, limited liability company or other form of privately held legal entity, a controlling interest is the holding of securities of 15% or more in the legal entity, unless this presumption of control is rebutted by clear and convincing evidence. "Department." The Department of Revenue of the Commonwealth. "Entry fee." The cash or cash equivalent paid by a participant to a licensed operator in order to participate in a fantasy contest. "Fantasy contest." As follows: (1) An online fantasy or simulated game or contest with an entry fee and a prize or award in which: (i) The value of all prizes or awards offered to winning participants is established and made known to participants in advance of the contest and the value is not determined by the number of participants or the amount of any fees paid by those participants. (ii) All winning outcomes reflect the relative knowledge and skill of participants and are determined by accumulated statistical results of the performance of individuals, including athletes in the case of sports events. (iii) No winning outcome is based on the score, point spread or performance of a single actual team or combination of teams or solely on a single performance of an individual athlete or player in a single actual event. (2) The term does not include social fantasy contests. "Fantasy contest account." The formal electronic system implemented by a licensed operator to record a participant's entry fees, prizes or awards and other activities related to participation in the licensed operator's fantasy contests. "Fantasy contest adjusted revenues." For each fantasy contest, the amount equal to the total amount of all entry fees collected from all participants entering the fantasy contest minus prizes or awards paid to participants in the fantasy contest, multiplied by the in-State percentage. "Fantasy contest license." A license issued by the board authorizing a person to offer fantasy contests in this Commonwealth in accordance with this chapter. "Fantasy contest terminal." A computerized or electronic terminal or similar device within a licensed facility that allows participants to: (1) register for a fantasy contest account; (2) pay an entry fee; (3) select athletes for a fantasy contest; (4) receive winnings; or (5) otherwise participate in a fantasy contest. "Gaming service provider." As defined in section 1103. "Highly experienced player." As follows: (1) Any participant who has: (i) entered more than 1,000 fantasy contests; or (ii) won more than three fantasy contest prizes or awards valued at $1,000 or more. (2) Once a participant is classified as a highly experienced player, a player shall remain classified as a highly experienced player. "In-State participant." An individual who participates in a fantasy contest conducted by a licensed operator and pays a fee to a licensed operator from a location within this Commonwealth. The term includes an individual who pays an entry fee through a fantasy contest terminal within a licensed facility. "In-State percentage." For each fantasy contest, the percentage, rounded to the nearest tenth of a percent, equal to the total entry fees collected from all in-State participants divided by the total entry fees collected from all participants in the fantasy contest. "Institutional investor." As defined in section 1103. "Key employee." An individual who is employed by an applicant for a fantasy contest license or a licensed operator in a director or department head capacity or who is empowered to make discretionary decisions that regulate fantasy contest operations as determined by the board. "Licensed entity representative." A person, including an attorney, agent or lobbyist, acting on behalf of or authorized to represent the interest of an applicant, licensee or other person authorized by the board to engage in an act or activity which is regulated under this chapter regarding a matter before, or which may be reasonably be expected to come before, the board. "Licensed facility." As defined in section 1103. "Licensed gaming entity." As defined in section 1103. "Licensed operator." A person who holds a fantasy contest license. "Licensee." A licensed operator, a principal or key employee of a licensed operator. "Participant." An individual who participates in a fantasy contest, whether the individual is located in this Commonwealth or another jurisdiction. "Person." A natural person, corporation, publicly traded corporation, foundation, organization, business trust, estate, limited liability company, licensed corporation, trust, partnership, limited liability partnership, association or any other form of legal business entity. "Principal." An officer, director or person who directly holds a beneficial interest in or ownership of the securities of an applicant for a fantasy contest license or a licensed operator, a person who has a controlling interest in an applicant for a fantasy contest license or a licensed operator or who has the ability to elect a majority of the board of directors of a licensed operator or to otherwise control a licensed operator, lender or other licensed financial institution of an applicant for a fantasy contest license or a licensed operator, other than a bank or lending institution which makes a loan or holds a mortgage or other lien acquired in the ordinary course of business, underwriter of an applicant for a fantasy contest license or a licensed operator or other person or employee of an applicant for a fantasy contest license or a licensed operator deemed to be a principal by the board. "Prize or award." Anything of value worth $100 or more or any amount of cash or cash equivalents. "Publicly traded corporation." A person, other than an individual, that: (1) has a class or series of securities registered under the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78a et seq.); (2) is a registered management company under the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.); or (3) is subject to the reporting requirements under section 15(d) of the Securities Exchange Act of 1934 by reason of having filed a registration statement that has become effective under the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et seq.). "Script." A list of commands that a fantasy-contest-related computer software program can execute that is created by a participant or third party not approved by the licensed operator to automate processes on a licensed operator's fantasy contest platform. "Season-long fantasy contest." A fantasy contest offered by a licensed operator that is conducted over an entire sports season. "Social fantasy contest." A fantasy contest which meets one or more of the following criteria: (1) Nothing is offered to participants other than game-based virtual currency that cannot be redeemed for cash, merchandise or anything of value outside the context of game play. (2) The contest is free to all participants. (3) The entity offering the contest receives no compensation, other than an administrative fee for the maintenance of statistical information, in connection with the contest. (4) The winnings offered are of no greater value than the lowest individual fee charged to a single participant for entering or participating in the contest. (5) The contest encompasses an entire season of the activity in which the underlying competition is being conducted and the winnings offered, if any, are determined by agreement of the participants only in order to distribute fully the participants' contributions to a fund established to grant the winnings for the contest. "Suspicious transaction." A transaction between a licensed operator or an employee of a licensed operator and an individual that involves the acceptance or redemption by a person of cash or cash equivalent involving or aggregating $5,000 or more which a licensed operator or employee of a licensed operator knows, suspects or has reason to believe: (1) involves funds derived from illegal activities or is intended or conducted in order to conceal or disguise funds or assets derived from illegal activities; (2) is part of a plan to violate or evade a law or regulation to avoid a transaction reporting requirement under the laws or regulations of the United States or this Commonwealth, including a plan to structure a series of transactions to avoid a transaction reporting requirement under the laws of the United States or this Commonwealth; or (3) has no apparent lawful purpose or is not the type of transaction in which a person would normally be expected to engage and the licensed operator or employee knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction.

4 Pa.C.S. § 311 General and specific powers of board.

(a) General powers.-- (1) The board shall have general and sole regulatory authority over the conduct of fantasy contests and related activities as described in this chapter. The board shall ensure the integrity of fantasy contests offered in this Commonwealth. (2) The board may employ individuals as necessary to carry out the requirements of this chapter, who shall serve at the board's pleasure. An employee of the board shall be considered a State employee for purposes of 71 Pa.C.S. Pt. XXV (relating to retirement for State employees and officers). (b) Specific powers.--The board shall have the following specific powers: (1) At the board's discretion, to issue, approve, renew, revoke, suspend, condition or deny issuance of licenses under this chapter. (2) At the board's discretion, to suspend, condition or deny the issuance or renewal of a license or levy fines for any violation of this chapter. (3) To publish each January on the board's publicly accessible Internet website a complete list of all persons who applied for or held a fantasy contest license at any time during the preceding calendar year and the status of the application or fantasy contest license. (4) To prepare and, through the Governor, submit annually to the General Assembly an itemized budget consistent with Article VI of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, consisting of the amounts necessary to be appropriated by the General Assembly out of the accounts established under section 332 (relating to licensed operator deposits) required to meet the obligations under this chapter accruing during the period beginning July 1 of the following fiscal year. (5) In the event that, in any year, appropriations for the administration of this chapter are not enacted by June 30, any funds appropriated for the administration of this chapter which are unexpended, uncommitted and unencumbered at the end of a fiscal year shall remain available for expenditure by the board until the enactment of appropriation for the ensuing fiscal year. (6) To promulgate rules and regulations necessary for the administration and enforcement of this chapter. Except as provided in section 312 (relating to temporary regulations), regulations shall be adopted under the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law, and the act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act. (7) To administer oaths, examine witnesses and issue subpoenas compelling the attendance of witnesses or the production of documents and records or other evidence or to designate officers or employees to perform duties required by this chapter. (7.1) To require prospective and existing employees, independent contractors, applicants and licensees to submit to fingerprinting by the Pennsylvania State Police or an authorized agent of the Pennsylvania State Police. The Pennsylvania State Police or authorized agent of the Pennsylvania State Police shall submit the fingerprints to the Federal Bureau of Investigation for purposes or verifying the identity of the individual and obtaining records of criminal arrests and convictions. (7.2) To require prospective and existing employees, independent contractors, applicants and licensees to submit photographs consistent with the standards established by the board. (7.3) To require licensed operators to maintain an office or place of business within this Commonwealth. (7.4) To exempt certain prospective and existing employees or independent contractors from the requirements under paragraphs (7.1) and (7.2) that are not inconsistent with the proper regulation of fantasy contests under this chapter. (8) At the board's discretion, to delegate any of the board's responsibilities under this chapter to the executive director of the board or other designated staff. (9) To require licensed operators and applicants for a fantasy contest license to submit any information or documentation necessary to ensure the proper regulation of fantasy contests in accordance with this chapter. (10) To require licensed operators, except for a licensed operator operating season-long fantasy contests that generate less than $250,000 in season-long fantasy contest adjusted revenue, unless the board determines otherwise, to: (i) contract with a certified public accountant to conduct an annual independent audit in accordance with standards adopted by the American Institute of Certified Public Accountants to verify compliance with the provisions of this chapter and board regulations; (ii) contract with a testing laboratory approved by the board to annually verify compliance with the provisions of this chapter and board regulations; and (iii) annually submit to the board and department a copy of the audit report required by subparagraph (i) and submit to the board a copy of the report of the testing laboratory required by subparagraph (ii). (11) In conjunction with the Department of Drug and Alcohol Programs or successor agency, to develop a process by which licensed operators provide participants with a toll-free telephone number that provides individuals with information on how to access appropriate treatment services. (12) To promulgate regulations regarding the placement and operation of fantasy contest terminals within licensed facilities and to ensure the integrity of fantasy contest terminals. (b.1) Licensed entity representative.-- (1) A licensed entity representative shall register with the board, in a manner prescribed by the board. The registration shall include the name, employer or firm, business address and business telephone number of both the licensed entity representative and any licensed operator, applicant for licensure or other person being represented. (2) A licensed entity representative shall have an affirmative duty to update its registration information on an ongoing basis. Failure to update a registration shall be punishable by the board. (3) The board shall maintain a list of licensed entity representatives which shall contain the information required under paragraph (1) and shall be available on the board's publicly accessible Internet website. (c) Exceptions.--Except as provided under section 342 (relating to licensed gaming entities), nothing in this section shall be construed to authorize the board to require any additional permits or licenses not specifically enumerated in this chapter.

4 Pa.C.S. § 312 Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt implementation of this chapter, regulations promulgated by the board shall be deemed temporary regulations and shall expire no later than two years following the publication of temporary regulations. The board may promulgate temporary regulations not subject to: (1) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law. (2) Section 204(b) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act. (3) The act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act. (b) Expiration.--Except for temporary regulations concerning network connectivity, security and testing and compulsive and problem play, the authority provided to the board to adopt temporary regulations in subsection (a) shall expire no later than two years following the publication of temporary regulations. Regulations adopted after this period shall be promulgated as provided by law. Cross References. Section 312 is referred to in sections 311, 333 of this title.

4 Pa.C.S. § 313 Fantasy contest license appeals.

An applicant may appeal any final order, determination or decision of the board involving the approval, issuance, denial, revocation or conditioning of a fantasy contest license in accordance with 2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of Commonwealth agencies) and 7 Subch. A (relating to judicial review of Commonwealth agency action).

4 Pa.C.S. § 314 Board minutes and records.

(a) Record of proceedings.--The board shall maintain a record of all proceedings held at public meetings of the board. The verbatim transcript of the proceedings shall be the property of the board and shall be prepared by the board upon the request of any person and the payment by that person of the costs of preparation. (b) Applicant information.-- (1) The board shall maintain a list of all applicants for a fantasy contest license. The list shall include a record of all actions taken with respect to each applicant. The list shall be available on the board's publicly accessible Internet website. (2) Information under paragraph (1) regarding an applicant whose fantasy contest license has been denied, revoked or not renewed shall be removed from the list after seven years from the date of the action. (c) Other files and records.--The board shall maintain such other files and records as it may deem appropriate. (d) Confidentiality of information.-- (1) The following information submitted by an applicant for a fantasy contest license under section 322 (relating to application) or otherwise obtained by the board or the bureau as part of a background or other investigation from any source shall be confidential and withheld from public disclosure: (i) All information relating to character, honesty and integrity, including family, habits, reputation, history of criminal activity, business activities, financial affairs and business, professional and personal associations. (ii) Nonpublic personal information, including home addresses, telephone numbers and other personal contact information, Social Security numbers, educational records, memberships, medical records, tax returns and declarations, actual or proposed compensation, financial account records, creditworthiness or financial condition relating to an applicant or licensee. (iii) Information relating to proprietary information, trade secrets, patents or exclusive licenses, architectural and engineering plans and information relating to competitive marketing materials and strategies that may include customer-identifying information or customer prospects for services subject to competition. (iv) Information with respect to which there is a reasonable possibility that public release or inspection of the information would constitute an unwarranted invasion into personal privacy of an individual as determined by the board. (v) Records of an applicant for a fantasy contest license or a licensed operator not required to be filed with the Securities and Exchange Commission by issuers that either have securities registered under section 12 of the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78l) or are required to file reports under section 15(d) of the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78o). (vi) Records considered nonpublic matters or information by the Securities and Exchange Commission as provided by 17 CFR 200.80 (relating to commission records and information). (vii) Financial or security information deemed confidential by the board upon a showing of good cause by the applicant for a fantasy contest license or licensed operator. (2) Except as provided in paragraph (1), no claim of confidentiality shall be made regarding any criminal history record information that is available to the public under 18 Pa.C.S. § 9121(b) (relating to general regulations). (3) Except as provided in paragraph (1), no claim of confidentiality shall be made regarding a record in possession of the board that is otherwise publicly available from the board under the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law. (4) The information made confidential under this section shall be withheld from public disclosure, in whole or in part, except that any confidential information shall be released upon the order of a court of competent jurisdiction or, with the approval of the Attorney General, to a duly authorized law enforcement agency or shall be released to the public, in whole or in part, to the extent that such release is requested by an applicant for a fantasy contest license or licensed operator and does not otherwise contain confidential information about another person. (5) The board may seek a voluntary waiver of confidentiality from an applicant for a fantasy contest license or a licensed operator, but may not require an applicant or licensed operator to waive any confidentiality provided for in this subsection as a condition for the approval of an application, renewal of a fantasy contest license or any other action of the board. (e) Notice.--Notice of the contents of any information, except to a duly authorized law enforcement agency under this section, shall be given to an applicant or licensee in a manner prescribed by the rules and regulations adopted by the board. (f) Information held by department.--Files, records, reports and other information in the possession of the department pertaining to licensed operators or applicants shall be made available to the board as may be necessary for the effective administration of this chapter.

4 Pa.C.S. § 315 Reports of board.

(a) General rule.--The annual report submitted by the board under section 1211 (relating to reports of board) shall include the following information on the conduct of fantasy contests: (1) Total fantasy contest adjusted revenues. (2) All taxes, fees, fines and other revenue collected from licensed operators during the previous year. The department shall collaborate with the board to carry out the requirements of this section. (3) At the board's discretion, any other information related to the conduct of fantasy contests or licensed operators. (b) Licensed operators.--The board may require licensed operators to provide information to the board to assist in the preparation of the report.

4 Pa.C.S. § 321 General prohibition.

(a) General rule.--Except as provided in subsection (b), no person may offer or otherwise make available for play in this Commonwealth a fantasy contest without a fantasy contest license. (b) Existing activity.--A person who applies for or renews a fantasy contest license in accordance with this chapter may operate during the application or renewal period unless: (1) The board has reasonable cause to believe the person or licensed operator is or may be in violation of the provisions of this chapter. (2) The board requires the person to suspend the operation of a fantasy contest until the fantasy contest license is issued or renewed.

4 Pa.C.S. § 322 Application.

(a) Form and information.--An application for a fantasy contest license shall be submitted on a form and in manner as shall be required by the board. An application for a fantasy contest license shall contain the following information: (1) (i) if the applicant is an individual, the name, Federal employer identification number and business address of the applicant; (ii) if the applicant is a corporation, the name and business address of the corporation, the state of its incorporation and the full name and business address of each officer and director thereof; (iii) if the applicant is a foreign corporation, the name and business address of the corporation, whether it is qualified to do business in this Commonwealth and the full name and business address of each officer and director thereof; and (iv) if the applicant is a partnership or joint venture, the name and business address of each officer thereof. (2) The name and business address of the person having custody of the applicant's financial records. (3) The names and business addresses of the applicant's key employees. (4) The names and business addresses of each of the applicant's principals. (5) Information, documentation and assurances related to financial and criminal history as the board deems necessary to establish by clear and convincing evidence the financial stability, integrity and responsibility of the applicant and the applicant's key employees and principals. (6) Information and documentation necessary to establish the applicant's ability to comply with section 325 (relating to conditions of licensure). (7) Any other information required by the board. (b) Nonrefundable application fee.--Each application submitted under this chapter shall be accompanied by a nonrefundable application fee, which shall be established by the board, and which may not exceed the amount necessary to reimburse the board for all costs incurred by the board for fulfilling the requirements of this section and section 323 (relating to issuance and denial of license). (c) Additional information.--A person applying for a fantasy contest license shall have an ongoing duty to provide information required by the board and to cooperate in any inquiry or investigation. (d) Abbreviated application process.--The board, at its discretion, may establish an abbreviated application process for a fantasy contest license for applicants that are also licensed gaming entities. The abbreviated application may only require information not in possession of the board that is necessary to fulfill the requirements of this chapter. Cross References. Section 322 is referred to in sections 314, 323, 327 of this title.

4 Pa.C.S. § 323 Issuance and denial of license.

(a) Duty to review applications.--The board shall review all applications for a fantasy contest license and may issue a license to any applicant that: (1) Has submitted a completed application and paid the nonrefundable application fee as required by the board under section 322 (relating to application). (2) Has demonstrated that the applicant has the financial stability, integrity and responsibility to comply with the provisions of this chapter and regulations established by the board. (3) Has not been denied an application for a fantasy contest license under subsection (b). (b) Reasons to deny applications.--The board may deny an application for a fantasy contest license if the applicant: (1) has knowingly made a false statement of material fact in the application or has deliberately failed to disclose any information requested; (2) employs a principal or key employee who has been convicted in any jurisdiction of any of the following: (i) a felony; (ii) an offense under the laws of another jurisdiction which, if committed in this Commonwealth, would be subject to imprisonment for more than five years; or (iii) a misdemeanor gambling offense, unless 15 years have elapsed from the date of conviction for the offense. (3) has at any time knowingly failed to comply with the provisions of this chapter or of any requirements of the board; (4) has had a registration, permit or license to conduct fantasy contests denied or revoked in any other jurisdiction; (5) has legally defaulted in the payment of any obligation or debt due to the Commonwealth or is not compliant with taxes due; (6) is not qualified to do business in this Commonwealth or is not subject to the jurisdiction of the courts of the Commonwealth; or (7) is found by the board to be unsuitable for licensure or inimicable to the interest of the Commonwealth to offer fantasy contests in this Commonwealth. (c) Time period for review.--The board shall conclude its review of an application for a fantasy contest license within 120 days of receipt of the completed application. If the fantasy contest license is not issued, the board shall provide the applicant with the justification for not issuing the fantasy contest license. (d) License fee.-- (1) Within 30 days of the board issuing a fantasy contest license, a successful applicant shall pay to the board a license fee of $50,000. (2) The license fee collected under this subsection shall be deposited into the General Fund. (3) If a licensed operator fails to pay the fee required by this subsection, the board shall suspend or revoke the licensed operator's fantasy contest license until payment of the license fee is received. (e) Abbreviated approval process.--The board, at its discretion, may establish an abbreviated approval process for the issuance of a fantasy contest license to a licensed gaming entity whose slot machine license under Chapter 13 (relating to licensees) and table game operation certificate under Chapter 13A (relating to table games) are in good standing. Cross References. Section 323 is referred to in sections 322, 327 of this title.

4 Pa.C.S. § 324 License renewal.

(a) Renewal.-- (1) A fantasy contest license issued under this chapter shall be valid for a period of five years. (2) Nothing in this subsection shall be construed to relieve a licensed operator of the affirmative duty to notify the board of any changes relating to the status of its fantasy contest license or to any other information contained in the application materials on file with the board. (3) The application for renewal of a fantasy contest license must be submitted at least 180 days prior to the expiration of the fantasy contest license and include an update of the information contained in the initial application for a fantasy contest license. A fantasy contest license for which a completed renewal application and fee as required under subsection (c) has been received by the board shall continue in effect unless and until the board sends written notification to the licensed operator that the board has denied the renewal of the fantasy contest license. (b) Revocation or failure to renew.-- (1) In addition to any other sanction the board may impose under this chapter, the board may at its discretion suspend, revoke or deny renewal of a fantasy contest license issued under this chapter if it receives information that: (i) the licensed operator or the licensed operator's key employees or principals are in violation of any provision of this chapter; (ii) the licensed operator has furnished the board with false or misleading information; (iii) the information contained in the licensed operator's initial application or any renewal application is no longer true and correct; (iv) the licensed operator has failed to remit taxes or assessments required under section 331 (relating to fantasy contest tax), 332 (relating to licensed operator deposits) or 333 (relating to responsibility and authority of department); or (v) the licensed operator has legally defaulted in the payment of any obligation or debt due to the Commonwealth. (2) In the event of a revocation or failure to renew, the licensed operator's authorization to conduct fantasy contests shall immediately cease and all fees paid in connection with the application shall be deemed to be forfeited. (3) In the event of a suspension, the licensed operator's authorization to conduct fantasy contests shall immediately cease until the board has notified the licensed operator that the suspension is no longer in effect. (c) Renewal fee.-- (1) Within 30 days of the board renewing a fantasy contest license, the licensed operator shall pay to the board a renewal fee of $10,000. (2) The renewal fee collected by the board under this subsection shall be deposited into the General Fund. (3) If a licensed operator fails to pay the renewal fee required under this subsection, the board shall suspend or revoke the licensed operator's fantasy contest license until payment of the renewal fee is received.

4 Pa.C.S. § 325 Conditions of licensure.

As a condition of licensure, the board shall require each licensed operator to establish and implement procedures to govern the conduct of fantasy contests in this Commonwealth. The procedures, at a minimum, shall: (1) Permit only participants who have established a fantasy contest account with the licensed operator to participate in a fantasy contest conducted by the licensed operator. (2) Verify the age, location and identity of any participant prior to making a deposit into a fantasy contest account for a participant located in this Commonwealth according to regulations established by the board. No participant under 18 years of age may be permitted to establish a fantasy contest account with a licensed operator. (3) Verify the identity of a participant by requiring the participant to provide the licensed operator a unique user name and password prior to accessing a fantasy contest account. (4) Ensure rules and prizes and awards established by the licensed operator for a fantasy contest are made known to a participant prior to the acceptance of any entry fee and prize and award values are not determined by the number of participants nor the amount of any fees paid by those participants. (4.1) Develop and offer fantasy contests that are limited to beginners as follows: (i) Except as provided in subparagraph (ii), a licensed operator shall prohibit participants who are not beginners from participating, directly or through another person as a proxy, in beginner fantasy contests. (ii) A licensed operator may allow a participant who is not a beginner to enter up to 10 beginner fantasy contests in any sport in which that participant has not already entered 20 fantasy contests. (iii) A licensed operator shall suspend the account of a participant who is not a beginner, except as provided for in subparagraph (ii), that enters a beginner fantasy contest and shall ban the participant from further participation in beginner fantasy contests offered by the licensed operator. (4.2) Develop and offer fantasy contests in which highly experienced players cannot, either directly or through another person as a proxy, participate. A licensed operator shall suspend the account of any highly experienced player who enters a fantasy contest which excludes highly experienced players, directly or through another person as a proxy, and shall ban the individual from further participation in fantasy contests offered by the licensed operator. (4.3) Establish a procedure for receiving and responding to participant complaints and reconciling a participant's fantasy contest account. The licensed operator shall forward to the board on a quarterly basis a copy of each complaint received. (4.4) Submit, in the manner as the board requires, a description of the licensed operator's administrative and accounting procedures in detail, including its written system of internal control. Each written system of internal control shall include: (i) An organizational chart depicting appropriate segregation of employee functions and responsibilities. (ii) A description of the duties and responsibilities of each employee position shown on the organizational chart. (iii) A detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of this section. (iv) Record retention policy. (v) A statement signed by the chief financial officer of the proposed licensed operator or other competent person and the chief executive officer of the proposed licensed operator or other competent person attesting that the officers believe, in good faith, that the system satisfies the requirements of this section. (vi) Any other item that the board may require in its discretion. (4.5) File a report of any suspicious transaction with the bureau. The following shall apply: (i) A licensed operator or a person acting on behalf of a licensed operator who knowingly fails to file a report of a suspicious transaction commits a misdemeanor of the third degree. (ii) A licensed operator or a person acting on behalf of a licensed operator who fails to file a report or a person who causes another person required under this section to fail to file a report of a suspicious transaction shall be strictly liable for his actions and may be subject to sanctions as determined by the board. (iii) The bureau shall maintain a record of all reports made under this paragraph for a period of five years. The bureau shall make the reports available to any Federal or State law enforcement agency without necessity of subpoena. (iv) A person who is required to file a report of a suspicious transaction shall not notify an individual suspected of committing the suspicious transaction that the transaction has been reported. A person that violates this subsection commits a misdemeanor of the third degree and may be subject to sanctions as determined by the board. (v) A person who is required to file a report of a suspicious transaction who in good faith makes the report shall not be liable in any civil action brought by a person for making the report, regardless of whether the transaction is later determined to be suspicious. (5) Ensure that an individual who is the subject of a fantasy contest is restricted from entering as a participant in a fantasy contest that is determined, in whole or part, on the accumulated statistical results of a team of individuals in the sport in which the individual is a member. (6) Allow a person to restrict himself from entering a fantasy contest or accessing a fantasy contest account for a specific period of time as determined by the participant and implement procedures to prevent the person from participating in the licensed operator's fantasy contests. The following shall apply to self-exclusions: (i) A person may request placement on the list of self-excluded persons and agree that, during any period of voluntary exclusion, the person may not collect any winnings nor recover any losses resulting from any fantasy contest activity. (ii) Notwithstanding any other law to the contrary, the board's list of self-excluded persons shall not be open to public inspection. Nothing in this section shall be construed to prohibit a licensed operator from disclosing the identity of persons self-excluded under this paragraph to affiliated licensed gaming entities or licensed operators in this Commonwealth or other jurisdictions for the limited purpose of assisting in the proper administration of responsible programs operated by affiliated licensed gaming entities or licensed operators. (7) Allow a person to restrict the total amount of deposits that the participant may pay to the licensed operator for a specific time period established by the participant and implement procedures to prevent the participant from exceeding the limit. (8) Conspicuously post compulsive and problem play notices at fantasy contest registration points and provide the toll-free telephone number to participants. The toll-free telephone number and the compulsive and problem play notice shall be approved by the board, in consultation with the Department of Drug and Alcohol Programs or a successor agency. (9) Disclose the number of entries a single participant may submit to each fantasy contest and take steps to prevent such participants from submitting more than the allowable number. (10) Prohibit the licensed operator's principals, employees and relatives living in the same household of an employee or principal from competing in a fantasy contest offered by any licensed operator to the general public and in which fantasy contest the licensed operator offers a prize or award. (11) Prevent the sharing of confidential information that could affect fantasy contest play with third parties until the information is made publicly available. (12) Take steps to maintain the confidentiality of a participant's personal and financial information. (13) Segregate participant funds from operational funds in separate accounts and maintain a reserve in the form of cash, cash equivalents, security deposits held by banks and processors, an irrevocable letter of credit, payment processor reserves and receivables, a bond or a combination thereof in an amount sufficient to pay all prizes and awards offered to winning participants. To satisfy this paragraph, a licensed operator that only offers season-long fantasy contests that generate less than $250,000 in season-long fantasy contest adjusted revenue may contract with a third party to hold prizes and awards in an escrow account until after the season is concluded and prizes and awards are distributed. (14) Provide winning in-State participants with information and documentation necessary to ensure the proper reporting of winnings by in-State participants to the department. (15) Remit taxes or assessments to the department in accordance with sections 331 (relating to fantasy contest tax), 332 (relating to licensed operator deposits) and 333 (relating to responsibility and authority of department). (16) Prohibit the use of scripts by participants and implement technologies to prevent the use of scripts. (17) Monitor fantasy contests for the use of scripts and prohibit participants found to have used such scripts from participation in future fantasy contests. (18) Establish any other condition deemed appropriate by the board. Cross References. Section 325 is referred to in section 322 of this title.

4 Pa.C.S. § 326 Prohibitions.

(a) General rule.--No licensed operator may: (1) accept an entry fee from or permit a natural person under 18 years of age to become a participant in a fantasy contest; (2) offer a fantasy contest based, in whole or in part, on collegiate or high school athletic events or players; (3) permit a participant to enter a fantasy contest prior to establishing a fantasy contest account, unless the licensed operator is also a licensed gaming entity and the participant enters a fantasy contest through a fantasy contest terminal located within the licensed gaming entity's licensed facility; (4) establish a fantasy contest account for a person who is not an individual; (5) alter rules established for a fantasy contest after a participant has entered the fantasy contest; (6) issue credit to a participant to establish or fund a fantasy contest account; (7) knowingly market to a participant during the time period in which the participant has self-excluded from the licensed operator's fantasy contests; (8) knowingly permit a participant to enter the licensed operator's fantasy contests during the time period in which the participant has self-excluded from the licensed operators' fantasy contests; (8.1) knowingly allow a self-excluded person to keep a prize or award. (9) knowingly accept a deposit in excess of a limit established by a participant for the specific time period established by the participant; (10) share confidential information that could affect fantasy contest play with third parties until the information is made publicly available; (11) knowingly permit a principal, an employee of a licensed operator or a relative living in the same household of an employee or principal of a licensed operator to become a participant in a fantasy contest offered by any licensed operator in which a licensed operator offers a prize or award; (12) offer a fantasy contest where: (i) the value of all prizes or awards offered to winning participants is not established and made known to participants in advance of the fantasy contest; (ii) the value of the prize or award is determined by the number of participants or the amount of any fees paid by those participants; (iii) the winning outcome does not reflect the relative knowledge and skill of participants; (iv) the winning outcome is based on the score, point spread or performance of a single actual team or combination of teams or solely on a single performance of an individual athlete or player in a single actual event; or (v) the winning outcome is not based on statistical results accumulated from fully completed athletic sports contests or events, except that participants may be credited for statistical results accumulated in a suspended or shortened sports event which has been partially completed on account of weather or other natural or unforeseen event; (13) fail to remit taxes or assessments to the department in accordance with sections 331 (relating to fantasy contest tax), 332 (relating to licensed operator deposits) and 333 (relating to responsibility and authority of department); (14) knowingly allow a participant to use a script during a fantasy contest; (15) except as permitted under section 342 (relating to licensed gaming entities), offer or make available in this Commonwealth a fantasy contest terminal; and (16) perform any other action prohibited by the board. (b) Deposit.--The licensed operator shall forward the amount of the prize or award under subsection (a)(8.1) to the board which shall transfer the amount to the State Treasurer for deposit in the General Fund.

4 Pa.C.S. § 327 Change in ownership or control of licensed operators.

(a) Notification and approval.-- (1) A licensed operator shall notify the board upon becoming aware of any proposed change of ownership of the licensed operator by a person or group of persons acting in concert which involves any of the following: (i) More than 15% of a licensed operator's securities or other ownership interests. (ii) The sale, other than in the ordinary course of business, of a licensed operator's assets. (iii) Any other transaction or occurrence deemed by the board to be relevant to fantasy contest license qualifications. (2) Notwithstanding the provisions of paragraph (1), a licensed operator shall not be required to notify the board of any acquisition by an institutional investor under paragraph (1)(i) or (ii) if the institutional investor holds less than 10% of the securities or other ownership interests referred to in paragraph (1)(i) or (ii), the securities or interests are publicly traded securities and its holdings of such securities were purchased for investment purposes only and the institutional investor files with the board a certified statement to the effect that the institutional investor has no intention of influencing or affecting, directly or indirectly, the affairs of the licensed operator. However, the institutional investor may vote on matters put to the vote of the outstanding security holders. Notice to the board shall be required prior to completion of any proposed or contemplated change of ownership of a licensed operator that meets the criteria of this section. (b) Qualification of purchaser and change of control.-- (1) A purchaser of the assets, other than in the ordinary course of business, of a licensed operator shall independently qualify for a fantasy contest license in accordance with this chapter and shall pay the application fee and license fee as required by sections 322 (relating to application) and 323 (relating to issuance and denial of license), except that if the purchaser of assets is another licensed operator, the purchaser of assets shall not be required to requalify for a fantasy contest license or pay another application fee and license fee. (2) A change in control of any licensed operator shall require that the licensed operator independently qualify for a fantasy contest license in accordance with this chapter, and the licensed operator shall pay a new application and license fee as required by sections 322 and 323, except that if the new controller is another licensed operator, the new controller shall not be required to requalify for a fantasy contest license or pay another application fee and license fee. (c) License revocation.--Failure to comply with this section may cause the fantasy contest license issued under this chapter to be revoked or suspended by the board unless the purchase of the assets or the change in control that meets the criteria of this section has been independently qualified in advance by the board and any required application or license fee has been paid. (d) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Change in control of a licensed operator." The acquisition by a person or group of persons acting in concert of more than 20% of a licensed operator's securities or other ownership interests, with the exception of any ownership interest of the person that existed at the time of initial licensing and payment of the initial fantasy contest license fee, or more than 20% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the licensed operator.

4 Pa.C.S. § 328 Penalties.

(a) Suspension or revocation of license.--After a public hearing with at least 15 days' notice, the board may suspend or revoke a licensed operator's fantasy contest license in any case where a violation of this chapter has been shown by a preponderance of the evidence. (b) Administrative penalties.-- (1) In addition to suspension or revocation of a fantasy contest license, the board may impose administrative penalties on a licensed operator for violations of this chapter. (2) A violation of this chapter that is determined to be an offense of a continuing nature shall be deemed to be a separate offense on each event or day during which the violation occurs. (3) The licensed operator shall have the right to appeal administrative penalties in accordance with 2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of Commonwealth agencies) and 7 Subch. A (relating to judicial review of Commonwealth agency action). (4) Penalties imposed under this subsection shall be deposited into the General Fund. (c) Civil penalties.-- (1) In addition to the provisions of this section, a person who knowingly violates a provision of this chapter shall be liable for a civil penalty of not more than $1,000 for each such violation. (2) The civil penalty shall be recovered in a civil action brought by the board and shall be paid into the General Fund.

4 Pa.C.S. § 331 Fantasy contest tax.

(a) Imposition.--Each licensed operator shall report to the department and pay from its monthly fantasy contest adjusted revenues, on a form and in the manner prescribed by the department, a tax of 15% of its monthly fantasy contest adjusted revenues. (b) Deposits and distributions.-- (1) The tax imposed under subsection (a) shall be payable to the department on a monthly basis and shall be based upon monthly fantasy contest adjusted revenue derived during the previous month. (2) All funds owed to the Commonwealth under this section shall be held in trust for the Commonwealth by the licensed operator until the funds are paid to the department. (3) The tax imposed and collected by the department under subsection (a) shall be deposited into the General Fund. (c) Penalty.-- (1) A licensed operator who fails to timely remit to the department the tax imposed under this section shall be liable, in addition to any sanction or penalty imposed under this chapter, for the payment of a penalty of 5% per month up to a maximum of 25% of the amounts ultimately found to be due, to be recovered by the department. (2) Penalties imposed and collected by the department or the board under this subsection shall be deposited into the General Fund. Cross References. Section 331 is referred to in sections 324, 325, 326, 333, 334 of this title.

4 Pa.C.S. § 332 Licensed operator deposits.

(a) Accounts established.--The State Treasurer shall establish within the State Treasury an account for each licensed operator for the deposits required under subsection (b) to recover costs or expenses incurred by the board and the department in carrying out their powers and duties under this chapter based upon a budget submitted by the board and the department under subsection (c). (b) Deposits.-- (1) The department shall determine the appropriate assessment amount for each licensed operator, which shall be a percentage assessed by the department on the licensed operator's fantasy contest adjusted revenues. Each licensed operator shall deposit funds into its account on a monthly basis. (2) The percentage assessed by the department shall not exceed an amount necessary to recover costs or expenses incurred by the board and the department in carrying out their powers and duties under this chapter based on a budget submitted by the board and the department under subsection (c). (c) Itemized budget reporting.-- (1) The board and the department shall prepare and annually submit to the chairperson and minority chairperson of the Appropriations Committee of the Senate and the chairperson and minority chairperson of the Appropriations Committee of the House of Representatives an itemized budget consisting of amounts to be appropriated out of the accounts established under this section necessary to administer this chapter. (2) The itemized budget required under paragraph (1) shall be submitted in conjunction with the budget required to be submitted under section 1202(b)(28) (relating to general and specific powers). (d) Appropriation.--Costs and expenses from accounts established under subsection (a) shall only be disbursed upon appropriation by the General Assembly. (e) Penalty.-- (1) A licensed operator who fails to timely remit to the department the tax imposed under this section shall be liable, in addition to any sanction or penalty imposed under this chapter, for the payment of a penalty of 5% per month up to a maximum of 25% of the amounts ultimately found to be due, to be recovered by the department. (2) Penalties imposed and collected by the department under this subsection shall be deposited into the General Fund. Cross References. Section 332 is referred to in sections 311, 324, 325, 326, 333 of this title.

4 Pa.C.S. § 333 Responsibility and authority of department.

(a) General rule.--The department shall administer and collect taxes imposed under section 331 (relating to fantasy contest tax) and interest imposed under section 806 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, and promulgate and enforce rules and regulations to carry out its prescribed duties in accordance with sections 331 and 332 (relating to licensed operator deposits), including the collection of taxes, penalties, assessments and interest. (b) Procedure.--For purposes of implementing sections 331 and 332, the department may promulgate regulations in the same manner in which the board is authorized as provided in section 312 (relating to temporary regulations). Cross References. Section 333 is referred to in sections 324, 325, 326 of this title.

4 Pa.C.S. § 334 Compulsive and problem gambling.

Each year, from the tax imposed under section 331, the amount equal to .002 multiplied by the total fantasy contest adjusted revenue of all active and operating licensed operators shall be transferred to the Department of Drug and Alcohol Programs or a successor agency to be used for drug and alcohol addiction treatment services, including treatment for drug and alcohol addiction related to compulsive and problem gambling as provided under section 1509.1 (relating to drug and alcohol treatment).

4 Pa.C.S. § 341 Applicability of other statutes.

(a) Unlawful gambling.--The provisions of 18 Pa.C.S. § 5513 (relating to gambling devices, gambling, etc.) shall not apply to a fantasy contest conducted in accordance with this chapter. (b) Pool selling and bookmaking.--The provisions of 18 Pa.C.S. § 5514 (relating to pool selling and bookmaking) shall not apply to a fantasy contest conducted in accordance with this chapter. (c) Lotteries.--The provisions of 18 Pa.C.S. § 5512 (relating to lotteries, etc.) shall not apply to a fantasy contest conducted in accordance with this chapter. (d) State Lottery Law.--This chapter shall not apply to a fantasy contest or similar product authorized under the act of August 26, 1971 (P.L.351, No.91), known as the State Lottery Law, and authorized solely by the department and the Division of the State Lottery or iLottery under Chapter 5 (relating to lottery).

4 Pa.C.S. § 341.1 Liability.

A licensed operator or employee of a licensed operator shall not be liable to any self-excluded person or to any other party in any judicial proceeding for any harm, monetary or otherwise, which may arise as a result of: (1) the failure of a licensed operator to withhold fantasy contest privileges from or restore fantasy contest privileges to a self-excluded person; or (2) otherwise permitting or not permitting a self- excluded person to engage in fantasy contest activity while on the list of self-excluded persons.

4 Pa.C.S. § 342 Licensed gaming entities.

(a) Scope.--This section shall apply to a licensed gaming entity that holds a fantasy contest license. (b) Applicability.--Nothing in this chapter shall be construed to limit the board's general and sole regulatory authority over the conduct of gaming or related activities under Part II (relating to gaming), including, but not limited to, the certification, registration and regulation of gaming service providers and individuals and entities associated with a gaming service provider. (c) Restricted contests.--A licensed gaming entity may offer restricted fantasy contests that are exclusive to participants who are at least 21 years of age. (d) Promotional play.--For a restricted fantasy contest under subsection (c), a licensed gaming entity may offer slot machine promotional play or table game match play to a participant who is at least 21 years of age as a prize or award or for participating in a fantasy contest conducted by the licensed gaming entity. (e) Gaming service providers.--A licensed operator who is not a licensed gaming entity may, at the discretion of the board, be certificated or registered as a gaming service provider under section 1317.2 (relating to gaming service provider) in order to operate fantasy contests subject to the requirements of this section. (f) Fantasy contest terminals.-- (1) A licensed gaming entity may petition the board, on a form and in a manner as required by the board, to place and operate fantasy contest terminals within the licensed gaming entity's licensed facility. (2) The board may, according to regulations adopted by the board, approve the placement and operation of fantasy contest terminals at one or more locations within a licensed facility, provided that fantasy contest terminals may not be placed on the gaming floor. (3) The board may not require a participant to establish a fantasy contest account prior to entering a fantasy contest through a fantasy contest terminal. Cross References. Section 342 is referred to in sections 311, 326 of this title.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=04Fetched: 10/16/2026

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