PRINTER'S NO. 1572
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1197
Session of
2015
INTRODUCED BY DUNBAR, CALTAGIRONE, COHEN, DAVIS, DIAMOND,
HEFFLEY, KOTIK AND WARNER, MAY 13, 2015
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MAY 13, 2015
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in gaming, providing for fantasy sports
tournaments.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 4 of the Pennsylvania Consolidated Statutes
is amended by adding a chapter to read:
CHAPTER 13B
FANTASY SPORTS TOURNAMENTS
Sec.
13B01. Definitions.
13B02. Fantasy sports tournaments.
13B03. Regulation and enforcement by board.
13B04. Application for license.
13B05. Board consideration of application.
13B06. Licensing fee.
13B07. Fantasy sports tournament tax.
§ 13B01. Definitions.
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The following words and phrases when used in t his chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Fantasy sports tournament." A fantasy or simulated sports
game or contest involving athletic events in which a participant
owns or manages an imaginary sports team and competes against
other participants or a target score for a predetermined prize.
"Fantasy sports tournament license." A license issued by the
board under this chapter that authorizes a licensed gaming
entity to offer fantasy sports tournaments, accept entry fees
from participants and award prizes.
"Gross tournament revenue." The total of all fees or cash
equivalents paid by participants to a licensee in order to
participate in a fantasy sports tournament minus:
(1) The total of cash or cash equivalents paid out to
participants as prizes.
(2) The cash equivalent value of any merchandise
included in the fantasy sports tournament and distributed to
participants.
(3) Cash or cash equivalents paid to purchase annuities
to fund prizes payable to participants over a period of time
as a result of participating in the fantasy sports
tournament.
"Licensee." A li censed gaming entity that holds a fantasy
sports tournament license.
"Mobile application." An application or program that is
capable of being downloaded or installed onto a portable
electronic device.
"Participant." A person that participates in a fantasy
sports tournament held by a licensee.
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"Prize." Cash, cash equivalents or merchandise.
"Tournament vendor." A person who partners or otherwise
contracts with a licensee to offer a service with respect to
fantasy sports tournaments.
§ 13B02. Fantasy sports tournaments.
(a) License required.--A licensed gaming entity that holds a
valid fantasy sports tournament license from the board may
operate fantasy sports tournaments.
(b) Conditions.--A fantasy sports tournament operated by a
licensee shall be subject to the following conditions:
(1) The imaginary sports team owned or managed by
participants may not be based on the current membership of an
actual team that is a member of an amateur or professional
sports organization.
(2) All prizes offered to winning participants shall be
established and made known to the participants in advance of
the fantasy sports tournament and the value of the prizes is
not determined by the number of participants or the amount of
any fees paid by the participants.
(3) All winning outcomes shall reflect the relative
knowledge and skill of the participants and be determined
predominantly by accumulated statistical results of the
performance of athletes in multiple real-world athletic
events.
(4) A winning outcome may not be based:
(i) on the score, point spread or performance of any
single real world team or any combination of teams; or
(ii) solely on any single performance of an
individual athlete in any single real-world athletic
event.
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(5) The minimum age for a participant in the fantasy
sports tournament shall be 21 years of age.
(6) The licensee shall comply with 31 U.S.C. Ch. 53
Subch. IV (relating to prohibition on funding of unlawful
Internet gambling).
(c) Location.--
(1) A fantasy sports tournament operated by a licensee
shall be conducted within the licensed facility.
(2) Entry into a fantasy sports tournament, selection of
imaginary sports teams and payment of associated fees by
participants shall be conducted within the licensed facility.
(3) Prizes shall be awarded to participants within the
licensed facility.
(d) Online access.--Notwithstanding sub section (c), a
licensee may develop an Internet website or mobile application
to permit participants to view standings and accumulated points
of imaginary sports teams.
(e) Tournament vendors.--A licensee may partner or otherwise
contract with one or more tournament vendors to operate fantasy
sports tournaments within the licensed facility. Tournament
vendors shall be licensed by the board.
§ 13B03. Regulation and enforcement by board.
(a) General rule.--The board shall promulgate regulations
for the operation of fantasy sports tournaments by licensees and
tournament vendors and shall enforce the regulations.
(b) Powers and duties.--The board shall:
(1) Authorize licensees and tournament vendors to
conduct fantasy sports tournaments, subject to the provisions
of this chapter and other applicable provisions of law.
(2) Develop standards for evaluating and approving
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fantasy sports tournaments.
§ 13B04. Application for license.
Ninety days after the e ffective date of this section , a
licensed gaming entity may apply for a fantasy sports tournament
license under this chapter . The application shall include:
(1) The name, business address and contact information
of the applicant.
(2) Identification of and a detailed description of the
qualifications of any proposed tournament vendors. Detailed
information shall be provided describing the specific
operational responsibilities of tournament vendors and the
nature of the economic relationship with the tournament
vendors.
(3) Identification and a description of fantasy sport
tournaments the applicant proposes to make available,
including prizes to be awarded to winning participants.
(4) Other information as the board, in its discretion,
determines to be necessary.
§ 13B05. Board consideration of application.
(a) Suitability.--A holder, or an affiliate of a holder, of
a slot machine license and table game operation certificate,
whose license and certificate are in good standing, shall be
considered suitable to be issued a fantasy sports tournament
license by the board without additional investigation.
(b) Tournament vendors.--The board shall determine the
suitability of a tournament vendor, consistent with the
requirements of this chapter .
(c) Qualifications.--A review of the suitability of a person
to hold a license as a licensee or tournament vendor shall
include the review and determination of whether:
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(1) The person possesses the requisite experience and
skill to perform the functions consistent with the
requirements of this chapter .
(2) The applicant is a person of good character, honesty
and integrity.
(3) The applicant is a person whose prior activities,
criminal record, if any, reputation, habits and associations
do not:
(i) pose a threat to the public interest or to the
effective regulation and control of fantasy sports
tournaments; or
(ii) create or enhance the dangers of unsuitable,
unfair or illegal practices, methods and activities in
the conduct of fantasy sports tournaments or in the
carrying on of the business and financial arrangements
incidental to fantasy sports tournaments.
(d) Issuance of order.--
(1) The board may issue an order granting or denying an
application for a license as a licensee or tournament vendor
within 120 days of the date on which a properly completed
application and any additional information that the board may
require is filed.
(2) If the board approves an application, it may impose
reasonable conditions of licensure consistent with the
requirements of this chapter .
§ 13B06. Licensing fee.
If the board grants an application under section 13B04
(relating to application for license) within 60 days of entry of
the board's order, the successful applicant shall pay a
licensing fee of $50,000, if a licensee, or $10,000, if a
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tournament vendor.
§ 13B07. Fantasy sports tournament tax.
(a) Imposition.-- Each licensee shall report to the
department and pay from its monthly gross tournament revenue, on
a form and in the manner prescribed by the department, a tax of
5% of its monthly gross tournament revenue.
(b) Deposits and distributions.--
(1) The tax imposed under sub section (a) shall be
payable to the department on a monthly basis and shall be
based upon gross tournament 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
licensee until the funds are paid to the department. Unless
otherwise agreed to by the board, a licensee shall establish
a separate bank account into which gross tournament revenue
shall be deposited and maintained until such time as the
funds are paid to the department under this section .
(3) The tax imposed under sub section (a) shall be
deposited into the General Fund.
Section 2. This act shall take effect in 60 days.
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