February 16, 2017
The Mississippi State House of Representatives recently passed a bill that would implement fantasy sports regulations. The bill will now head to the State Senate for debate and a vote on the measure.
What are some of the key components of Mississippi’s proposed fantasy sports regulations?
The proposed fantasy sports regulations contained in the Mississippi bill include many requirements that those in the industry have come to recognize in similar regulatory schemes enacted across the country including, but not limited to, the following:
- Licensure requirements, including payment of a five-thousand-dollar ($5,000) application fee;
- Prevention of employees and relatives from participating in contests and sharing confidential information with third parties;
- Requirements that operators must verify that participants are at least 18 years of age or older;
- Restrictions on the number of entries that a single participant can submit in a given contest;
- Requirements to identify highly skilled players within the contest platforms;
- Mandatory segregation of participants’ entry fee funds from operational funds;
- Strict advertisement regulations, specifically with respect to representations involving prizes and expectations of winning prizes;
- Prohibition against the use of scripts; and
- Requirements that operators must contract with third parties to conduct annual audits.
Evolution of Fantasy Sports Regulations and the Ongoing Need for a Fantasy Sports Lawyer
Fantasy sports contests and the laws and regulations that govern them, continue to grow and evolve. Between various legislative efforts across the country affecting the industry, conflicting opinions from attorneys general and court challenges to newly-enacted legislation, it is clear that the legal landscape of the fantasy sports space is far from settled. Against this backdrop, it remains imperative to engage a competent fantasy sports lawyer to become/remain compliant with applicable law when setting up and operating fantasy sports contests.
If you are interested in learning more about this topic or pursuing a fantasy sports venture, please e-mail us at info@kleinmoynihan.com, or call us at (212) 246-0900.
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