N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 1404: Required safeguards, minimum standards

§ 1404. Required safeguards, minimum standards. 1. As a condition of

registration in New York state, each operator and registrant shall

implement the following measures:

(a) limit each authorized player to one active and continuously used

account, and prevent prohibited players from maintaining accounts or

participating in any contest offered by such operator or registrant;

(b) prohibit minors from participating in any contest, which includes:

(i) if a registrant becomes or is made aware that a minor has

participated in one of its contests, such registrant shall promptly,

within no more than two business days, refund any deposit received from

the minor, whether or not the minor has engaged in or attempted to

engage in a contest; provided, however, that any refund may be offset by

any prizes already awarded;

(ii) each registrant shall publish and facilitate parental control

procedures to allow parents or guardians to exclude minors from access

to any contest or platform. Such procedures shall include a toll-free

number to call for help in establishing such parental controls; and

(iii) each registrant shall take appropriate steps to confirm that an

individual opening an account is not a minor.

(c) when referencing the chances or likelihood of winning in

advertisements or upon contest entry, make clear and conspicuous

statements that are not inaccurate or misleading concerning the chances

of winning and the number of winners;

(d) enable authorized players to exclude themselves from contests and

take reasonable steps to prevent such players from entering a contest

from which they have excluded themselves;

(e) permit any authorized player to permanently close an account

registered to such player, on any and all platforms supported by such

operator or registrant, at any time and for any reason;

(f) offer introductory procedures for authorized players, that shall

be prominently displayed on the main page of such operator or

registrant's platform, that explain contest play and how to identify a

highly experienced player;

(g) identify all highly experienced players in any contest by a symbol

attached to such players' usernames, or by other easily visible means,

on all platforms supported by such operator or registrant;

(h) disclose the number of entries a single authorized player may

submit to each contest;

(i) disclose the maximum number of total entries allowed for each

contest;

(j) implement measures to protect the privacy and online security of

authorized players and their accounts;

(k) offer all authorized players access to his or her account history

and account details;

(l) ensure authorized players' funds are protected upon deposit and

segregated from the operating funds of such operator or registrant and

otherwise protected from corporate insolvency, financial risk, or

criminal or civil actions against such operator or registrant;

(m) list on each website, in a prominent place, information concerning

assistance for compulsive play in New York state, including a toll-free

number directing callers to reputable resources containing further

information, which shall be free of charge;

(n) ensure the value of any prizes and awards offered to authorized

players shall be established and made known to such players in advance

of the contest, and such value shall not be determined by the number of

authorized players or the amount of any entry fees paid by such players;

(o) ensure all winning outcomes reflect the relative knowledge and

skill of the authorized players and shall be determined predominantly by

accumulated statistical results of the performance of individuals in

sports events;

(p) ensure no winning outcome shall be based on the score, point

spread, or performance of a single sports team, or any combination of

such teams;

(q) ensure no winning outcome shall be based solely on any single

performance of an individual athlete in a single sport or athletic

event; and

(r) ensure no game or contest shall be based on a prohibited sports

event.

2. Each registrant shall restrict the number of entries submitted by a

single authorized player for any contest to a maximum of one hundred

fifty entries per player per contest, or a maximum of three percent of

the total number of entries by all players for any contest, whichever is

less, or as determined by the commission. Registrants shall take

reasonable steps to prevent authorized players from submitting more than

the allowable number of entries per contest. The commission shall

promulgate regulations to further effectuate this subdivision to ensure

that the number of entries submitted by a single authorized player for

any contest will lead to a fair and equitable distribution of number of

entries.

3. (a) Operators shall not directly or indirectly operate, promote, or

advertise any platform or contest to persons located in New York state

unless registered pursuant to this article.

(b) Unless otherwise approved by regulation of the commission,

operators and registrants shall not directly or indirectly promote or

advertise any online fantasy or simulation sports games or contests with

an entry fee during the conduct of any online fantasy or simulation

sports games or contests without an entry fee. This paragraph shall not

apply to any operator or registrant that prohibits prohibited players

from participating in online fantasy or simulation sports games or

contests without an entry fee.

4. Registrants shall not offer any contest based on any prohibited

sports event.

5. Registrants shall not permit any minor or prohibited participant to

enter any contest.

6. Advertisements for contests and prizes offered by a registrant

shall not target prohibited participants, minors, or self-excluded

persons. Representations or implications about average winnings from

contests shall not be unfair or misleading. Such representations shall

include, at a minimum:

(a) the median and mean net winnings of all authorized players

participating in contests offered by such registrant; and

(b) the percentage of winnings awarded by the registrant to highly

experienced players participating in contests offered by such registrant

within the preceding calendar year.

7. Registrants shall prohibit the use of third-party scripts or

scripting programs for any contest and ensure that measures are in place

to deter, detect and, to the extent reasonably possible, prevent

cheating, including collusion, and the use of cheating devices,

including use of software programs that submit entry fees or adjust the

athletes selected by an authorized player.

8. Operators and registrants shall develop and prominently display

procedures on the main page of such operator's or registrant's platform

for the filing of a complaint by the authorized player against such

registrant. An initial response shall be given by such registrant to

such player filing the complaint within forty-eight hours. A complete

response shall be given by such registrant to such player filing the

complaint within ten business days. An authorized player may file a

complaint alleging a violation of the provisions of this article with

the commission.

9. Registrants shall maintain records of all accounts belonging to

authorized players and retain such records for five years from the date

an account was created.