F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 7079 2024
1 A bill to be entitled
2 An act relating to the Fantasy Sports Contest
3 Amusement Act; creating s. 546.11, F.S.; providing a
4 short title; creating s. 546.12, F.S.; providing
5 legislative findings and intent; creating s. 546.13,
6 F.S.; defining terms; creating s. 546.14, F.S.;
7 requiring the Florida Gaming Control Commission to
8 enforce and administer the act; authorizing the
9 commission to take certain actions; requiring the
10 commission to revoke a contest operator's license
11 under certain circumstances; requiring the commission
12 to adopt rules; creating s. 546.15, F.S.; providing
13 application requirements for fantasy sports contest
14 operator licenses; providing that specified persons or
15 entities are not eligible for licensure under certain
16 circumstances; defining the term "convicted";
17 specifying that a contest operator license is
18 automatically suspended under certain circumstances;
19 providing an exception; requiring contest operators to
20 report certain changes in ownership or interest;
21 creating s. 546.16, F.S.; requiring a contest operator
22 to implement specified consumer protection procedures;
23 defining the term "relative"; requiring a contest
24 operator to annually contract with a third party to
25 perform an independent audit; requiring a contest
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26 operator to submit the audit results to the commission
27 within a certain timeframe; requiring a contest
28 operator to use data sources that meet specified
29 requirements; creating s. 546.17, F.S.; requiring
30 contest operators to keep and maintain certain records
31 for a specified period; providing a requirement for
32 such records; requiring that such records be available
33 for audit and inspection; requiring the commission to
34 adopt rules; creating s. 546.18, F.S.; providing a
35 civil penalty; providing applicability; exempting
36 fantasy sports contests from certain provisions in ch.
37 849, F.S.; amending s. 16.71, F.S.; prohibiting the
38 Governor from soliciting or requesting certain
39 information from a person who holds a license to
40 conduct fantasy sports contests; amending s. 16.712,
41 F.S.; conforming provisions to changes made by the
42 act; amending s. 16.713, F.S.; revising prohibitions
43 relating to appointment to and employment with the
44 commission to include prohibitions relating to fantasy
45 sports contests licenses; amending s. 16.715, F.S.;
46 revising prohibitions relating to former commissioners
47 and employees of the commission to include
48 prohibitions relating to fantasy sports contests
49 licenses; amending s. 849.142, F.S.; providing that
50 specified provisions do not apply to participation in
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51 or the conduct of fantasy sports contests; providing
52 an effective date.
53
54 Be It Enacted by the Legislature of the State of Florida:
55
56 Section 1. Section 546.11, Florida Statutes, is created to
57 read:
58 546.11 Short title.—Sections 546.11-546.18 may be cited as
59 the "Fantasy Sports Contest Amusement Act."
60 Section 2. Section 546.12, Florida Statutes, is created to
61 read:
62 546.12 Legislative intent; findings.—It is the intent of
63 the Legislature to ensure public confidence in the integrity of
64 fantasy sports contests and contest operators. This act is
65 designed to regulate the contest operators and individuals who
66 participate in such contests and to enact consumer protections
67 related to fantasy sports contests. Furthermore, the Legislature
68 finds that fantasy sports contests, as that term is define d in
69 s. 546.13, involve the skill of contest participants.
70 Section 3. Section 546.13, Florida Statutes, is created to
71 read:
72 546.13 Definitions.—As used in ss. 546.11-546.18, the
73 term:
74 (1) "Act" means the Fantasy Sports Contest Amusement Act,
75 ss. 546.11-546.18.
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76 (2) "Commission" means the Florida Gaming Control
77 Commission.
78 (3) "Confidential information" means information related
79 to the playing of fantasy sports contests by contest
80 participants which is obtained solely as a result of a person's
81 employment with, or work as an agent of, a contest operator.
82 (4) "Contest operator" means a person or an entity that
83 offers fantasy sports contests for a cash prize to members of
84 the public, but does not include a noncommercial contest
85 operator in this state.
86 (5) "Contest participant" means a person who pays an entry
87 fee for the ability to participate in a fantasy or simulation
88 sports game or contest offered by a contest operator or
89 noncommercial contest operator.
90 (6) "Entry fee" means the cash or cash equivalent amount
91 that a person is required to pay to a contest operator or
92 noncommercial contest operator to participate in a fantasy
93 sports contest.
94 (7) "Fantasy sports contest" means a fantasy or simulation
95 sports game or contest offered by a contest operator or a
96 noncommercial contest operator in which a contest participant
97 manages a fantasy or simulation sports team composed of athletes
98 from a professional sports organization and which meets each of
99 the following requirements:
100 (a) All prizes and awards offered to winning contest
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101 participants are established and made known to the contest
102 participants in advance of the game or contest, and their value
103 is not determined by the number of contest participants or the
104 amount of any fees paid by those contest participants.
105 (b) All winning outcomes reflect the relative knowledge
106 and skill of the contest participants and are determined
107 predominantly by accumulated statistical results of the
108 performance of individuals, including athletes in the case of
109 sporting events.
110 (c) No winning outcome is based on the score, point
111 spread, or any performance or performances of any single actual
112 team or combination of such teams; solely on any single
113 performance of an individual athlete or player in a single
114 actual event; on a pari-mutuel event, as the term "pari-mutuel"
115 is defined in s. 550.002; on a game of poker or other card game;
116 or on the performances of participants in collegiate, high
117 school, or youth sporting events.
118 (d) No casino graphics, themes, or titles, including, but
119 not limited to, depictions of slot machine-style symbols, cards,
120 dice, craps, roulette, or lotto, are displayed or depicted.
121 (8) "Noncommercial contest operator" means a natural
122 person who organizes and conducts a fantasy or simulation sports
123 game in which contest participants are charged entry fees for
124 the right to participate; entry fees are collected, maintained,
125 and distributed by the same natural person; the total entry fees
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126 collected, maintained, and distributed by such natural person do
127 not exceed $1,500 per season or a total of $10,000 per calendar
128 year; and all entry fees are returned to the contest
129 participants in the form of prizes.
130 Section 4. Section 546.14, Florida Statutes, is created to
131 read:
132 546.14 Enforcement and administration; rulemaking.—
133 (1) The commission shall enforce and administer this act.
134 (2) The commission may:
135 (a) Conduct investigations and monitor the operation and
136 play of fantasy sports contests.
137 (b) Review the books, accounts, and records of any current
138 or former contest operator.
139 (c) Deny, suspend, or revoke any license under this act
140 for any violation of state law or rule.
141 (d) Take testimony, issue summonses and subpoenas for any
142 witness, and issue subpoenas duces tecum in connection with any
143 matter within its jurisdiction.
144 (e) Monitor and ensure the proper collection and
145 safeguarding of entry fees and the payment of contest prizes in
146 accordance with consumer protection procedures enacted pursuant
147 to s. 546.16.
148 (f) Investigate any licensed or unlicensed person or
149 entity when such person or entity is advertising as offering or
150 providing, or is engaged in conducting, a fantasy sports contest
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151 that requires licensure under this act or when a contest
152 operator or noncommercial contest operator is engaged in
153 activities that do not comply with or are prohibited by this
154 act. The commission may issue an order to such licensed or
155 unlicensed person or entity or contest operator or noncommercial
156 contest operator to cease and desist the further conduct of such
157 activities, may seek an injunction, or may take other
158 appropriate action to enforce this act.
159 (3) The commission must revoke a contest operator's
160 license if the contest operator offers fantasy sports contests
161 that violate s. 546.13(7)(c).
162 (4) The commission shall adopt rules to implement and
163 administer this act.
164 Section 5. Section 546.15, Florida Statutes, is created to
165 read:
166 546.15 Licensing; renewal.—
167 (1) A contest operator must be licensed by the commission
168 to conduct fantasy sports contests within this state. Licenses
169 are effective for 1 year after issuance and must be renewed
170 annually.
171 (2) The license application must include:
172 (a) The full name of the applicant.
173 (b) If the applicant is a corporation, the name of the
174 state in which the applicant is incorporated and the names and
175 addresses of the officers, directors, and shareholders who hold
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176 15 percent or more equity.
177 (c) If the applicant is a business entity other than a
178 corporation, the names and addresses of each principal, partner,
179 or shareholder who holds 15 percent or more equity, and any
180 person who individually or in concert with a relative
181 beneficially owns or controls, or has the power to vote or cause
182 the vote of, 15 percent or more equity. For the purposes of this
183 act, the term "relative" means a spouse, father, mother, son,
184 daughter, grandfather, grandmother, brother, sister, uncle,
185 aunt, cousin, nephew, niece, father-in-law, mother-in-law, son-
186 in-law, daughter-in-law, brother-in-law, sister-in-law,
187 stepfather, stepmother, stepson, stepdaughter, stepbrother,
188 stepsister, half brother, or half sister.
189 (d) The names and addresses of the ultimate equitable
190 owners of the corporation or other business entity, if different
191 from those provided under paragraph (b) or paragraph (c), unless
192 the securities of the corporation or entity are registered
193 pursuant to s. 12 of the Securities Exchange Act of 1934, 15
194 U.S.C. ss. 78a-78kk, and either:
195 1. The corporation or entity files with the United States
196 Securities and Exchange Commission the reports required by s. 13
197 of that act; or
198 2. The securities of the corporation or entity are
199 regularly traded on an established securities market in the
200 United States.
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201 (e) The estimated number of fantasy sports contests to be
202 conducted by the applicant annually.
203 (f) A statement of the assets and liabilities of the
204 applicant.
205 (g) If required by the commission, the names and addresses
206 of the officers and directors of any creditor of the applicant
207 and of stockholders who hold more than 10 percent of the stock
208 of the creditor.
209 (h) For each individual listed in the application pursuant
210 to paragraph (a), paragraph (b), paragraph (c), or paragraph
211 (d), a full set of fingerprints, to be submitted to the
212 commission or to a vendor, an entity, or an agency authorized
213 under s. 943.053(13).
214 1. The commission, vendor, entity, or agency shall forward
215 the fingerprints to the Department of Law Enforcement for state
216 processing, and the Department of Law Enforcement shall forward
217 the fingerprints to the Federal Bureau of Investigation for
218 national