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universities.
Rule |
Rule 3772-74-01 | Definitions.
Effective:
September 3, 2019
(A) The words and terms defined in
section 3774.01 of the Revised Code are used in Chapter 3772-74 of the
Administrative Code as they are defined in that section. (B) As used in Chapter 3772-74 of the
Administrative Code, the following words have the following meanings, unless
the context clearly indicates otherwise: (1) "Advertisement" means any notice or
communication to the public or any information concerning the fantasy
contest-related business designed to solicit or entice fantasy contest players
to participate in fantasy contests of a fantasy contest operator through
broadcasting, publication, or any other means of dissemination and includes
promotional giveaways, games, and similar activities. (2) "Applicant"
means any person who applies for a license under fantasy contest
law. (3) "Conduct"
means to back, promote, offer, organize, manage, carry on, sponsor, or prepare
for the operation of a fantasy contest. (4) "Fantasy contest
operator employee" means any of the following: (a) A board member or employee of a fantasy contest
operator; (b) A board member or employee of a fantasy contest
management company that must apply for licensure under rule 3772-74-08 of the
Administrative Code; or (c) Any contractor of a person described in paragraph
(B)(4)(a) or (B)(4)(b) of this rule who has access to material nonpublic
information. (5) "Fantasy contest
law" means division (L) of section 3772.03 of the Revised Code, Chapter
3774. of the Revised Code, and Chapter 3772-74 of the Administrative
Code. (6) "Fantasy contest
player funds" means cash or cash equivalents of all of the
following: (a) Amounts held by the fantasy contest operator in the
fantasy contest players account. Funds that have been withdrawn by a
fantasy contest player from a fantasy contest player's account are not
captured in this definition; (b) Amounts accepted by the fantasy contest operator as
entry fees on fantasy contests whose outcome have not yet been determined;
and (c) Amounts owed to fantasy contest players but not yet
paid by the fantasy contest operator as prizes, up to the amount of entry fees
collected. (7) "Licensee"
means any person who has been granted a license under fantasy contest
law. (8) "Participate in
conducting" means: (a) To have a part in or share of backing, promoting,
offering, organizing, managing, carrying on, sponsoring, or preparing the
operation of a fantasy contest; or (b) To manufacture, distribute, sell, lease, or otherwise
supply or provide fantasy contest equipment, goods, or services. (9) "Person"
has the same meaning as in section 3772.01 of the Revised Code. (10) "Prize"
means anything of value, including but not limited to, cash or a cash
equivalent, contest credits, merchandise, or admission to another fantasy
contest in which a prize may be awarded. (11) "Proposition
selection" means fantasy contest players choosing whether an identified
instance or statistical achievement will occur, will be achieved, or will be
surpassed. (12) "Roster"
means a selected and assembled group of athletes from the underlying actual
events and does not include fantasy contests that have the effect of mimicking
proposition selection.
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Rule 3772-74-02 | Authority and purpose.
Effective:
September 3, 2019
(A) The rules adopted in Chapter 3772-74
of the Administrative Code are done so pursuant to division (L) of section
3772.03 and Chapter 3774. of the Revised Code. (B) The purpose of Chapter 3772-74 of the
Administrative Code is to ensure the integrity of fantasy contests conducted in
the state of Ohio. (C) The commission shall have exclusive
jurisdiction over all matters within the scope of its authority under fantasy
contest law. (D) The commission may, under procedures
established in Chapter 119. of the Revised Code, adopt, amend, or repeal such
rules as it deems necessary and proper for the successful and efficient
regulation of fantasy contests under division (L) of section 3772.03 and
Chapter 3774. of the Revised Code. (E) The commission may, in its discretion
and where permitted by law, delegate its authority to perform any of its
functions related to the regulation of fantasy contests to the executive
director or to other employees of the commission. Such delegations shall be
governed by rule 3772-2-05 of the Administrative Code. (F) All notice to, requests of, or correspondence with the
commission related to fantasy contest law shall be made to the executive
director.
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Rule 3772-74-03 | Construction.
Effective:
September 3, 2019
(A) The provisions of Chapter 3772-74 of
the Administrative Code shall be construed in accordance with generally
accepted principles of statutory construction, including those set forth in
agency 3772 of the Administrative Code. (B) In the interpretation of any
provisions of Chapter 3772-74 of the Administrative Code, any ambiguity shall
be resolved in favor of the interpretation that would provide: (1) The greater assurance
of integrity in either the operation or regulation of fantasy contests;
or (2) Heightened public
confidence in the regulation or regulatory processes relating to fantasy
contests. (C) Nothing contained in Chapter 3772-74
of the Administrative Code shall be construed to limit the powers and duties of
the commission as provided in division (L) of section 3772.03 or Chapter 3774.
of the Revised Code or to conflict with any provision thereof or of any other
law. (D) If any provision of Chapter 3772-74
of the Administrative Code is held invalid, that holding shall not be construed
to invalidate any other provision of the rules.
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Rule 3772-74-04 | Access to records, examinations under oath, and subpoena power.
Effective:
September 3, 2019
Consistent with the authority to do the same with
respect to skill-based amusement machine operations and casino gaming and in
the discharge of any duties imposed by fantasy contest law, the commission may
utilize and enforce its authority to access records and conduct examinations
under oath as well as its subpoena power in accordance with section 3772.05 of
the Revised Code, division (D) of section 3772.04 of the Revised Code, and rule
3772-2-06 of the Administrative Code.
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Rule 3772-74-05 | Waivers and variances.
Effective:
September 3, 2019
(A) The commission may waive or grant a
variance from the provisions of Chapter 3772-74 of the Administrative Code,
either on its own or upon a written request, if the commission determines that
the waiver or variance is in the best interests of the public. (B) A person required to obtain a license
under fantasy contest law shall not seek a waiver from the requirements to
apply for, obtain, or maintain a license or to pay a different fee amount than
is required by rule 3772-74-08 or 3772-74-09 of the Administrative
Code. (C) A waiver or variance request
submitted under this rule shall be submitted in the manner prescribed by the
executive director and shall contain all of the following: (1) The requestor's
name, mailing address, telephone number, and electronic mail
address; (2) A contact person and
that person's mailing address, telephone number, and electronic mail
address; (3) A detailed
description of the specific provisions that the requestor is seeking to have
waived or to vary from and the reason or reasons justifying the
request; (4) The requestor's
signature or the signature of a duly authorized agent, employee, or
representative of the requestor; and (5) Any other information
required by the executive director. (D) In granting any waiver or variance
authorized by this rule, the commission may impose certain conditions and
restrictions with which the requestor must comply. Failure to comply with the
conditions or restrictions contained in the approved waiver or variance may
render the approval void, as determined by the commission at a meeting held
under section 3772.02 of the Revised Code. (E) The commission may consider any
waiver or variance request properly submitted under this rule at a meeting held
under section 3772.02 of the Revised Code or delegate such responsibility to
the executive director. If such a delegation occurs, the executive director
shall provide a written response to the requestor indicating whether the waiver
or variance has been granted or denied. (F) The commission, or the executive
director if delegated, shall retain sole authority to grant, deny, or modify a
waiver or variance request submitted under this rule. The request may be denied
or modified for any reason. (G) Denial or modification of any waiver
or variance request submitted under this rule shall not require notice and an
opportunity for hearing nor shall it be considered an adjudication or final
appealable order for purposes of Chapter 119. or section 2505.03 of the Revised
Code. Such denial or modification shall not be considered during any
determination of the rights, duties, privileges, or benefits of legal
relationships of the requestor.
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Rule 3772-74-06 | General fantasy contest licensing requirements.
Effective:
September 3, 2019
(A) Applicants for a license under
fantasy contest law are seeking a privilege. (B) An applicant must submit the
completed application in the manner prescribed by the executive
director. (C) The executive director may request
additional information not prescribed in the application. The applicant shall
provide all information, documents, materials, and certifications at the
applicant's sole expense and cost. (D) An incomplete application, or an
application containing false, misleading, or omitted information, is cause for
administrative action. (E) A licensing investigation or
adjudication may be reopened at any time. (F) The executive director may recommend
to the commission that it deny any application, or limit, condition, restrict,
suspend, or revoke any license or impose any fine or other penalty upon any
licensee or other person in accordance with fantasy contest law. (G) No person may re-apply for a license
under fantasy contest law for three years from the date the person's
application for licensure was denied or license was revoked. (H) No license issued under this chapter
is transferable. A majority change in or transfer of control of a licensee, as
determined by the commission, at a meeting held under section 3772.02 of the
Revised Code, shall require the filing of a new application and submission of
the applicable fees under this chapter before a new license is eligible for
consideration or approval. A name change to a licensee, in and of itself, does
not constitute a transfer of a license nor require a licensee to seek a new
license. (I) A renewal application must be filed
in the manner prescribed by the executive director no less than ninety days
before the expiration of the license. (J) In determining whether a person is
eligible to obtain or maintain the privilege of a license under fantasy contest
law, the following may be considered: (1) The reputation,
experience, and financial integrity of the applicant or licensee; (2) Whether the applicant
or licensee possesses good character, honesty, and integrity; (3) If the applicant or
licensee has filed, or had filed against it, a proceeding for bankruptcy or has
ever been involved in any formal process to adjust, defer, suspend, or
otherwise resolve the payment of any debt; (4) If the applicant or
licensee is or has been a defendant in litigation involving the
applicant's or licensee's business practices; (5) If the applicant or
licensee has been indicted, convicted, or pleaded guilty or no contest
concerning any criminal offense under the laws of any jurisdiction, excluding
minor traffic offenses; (6) If the applicant or
licensee has been served with a complaint or other notice filed with any public
body regarding a payment of any tax required under federal, state, or local law
that has been delinquent for one or more years; (7) The extent to which
the applicant or licensee has cooperated with the commission; (8) Whether the applicant
or licensee has provided accurate and complete information or has submitted
false or misleading information; (9) The compliance
history of the applicant or licensee with fantasy contest-related requirements
in this state or any other jurisdiction; (10) The applicant's
or licensee's submission and maintenance of internal procedures required
by and compliant with fantasy contest law, if applicable; (11) If the applicant or
licensee has shown a disregard of or otherwise failed to comply with the laws
and regulations of this state or any other jurisdiction; (12) If awarding or
maintaining a license would undermine the public's confidence in fantasy
contests in this state; and (13) The suitability of
any other material person, as determined by the executive director, including
but not limited to, any management company, holding company, or any person
designated as a key employee as part of the fantasy contest operator's
application. (K) Nothing in paragraph (J) of this rule
shall be considered a limitation on the commission's authority to consider
any other information affecting the integrity of fantasy contest
law.
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Rule 3772-74-07 | Fantasy contest operator licensure.
Effective:
September 3, 2019
(A) A person seeking to obtain or renew a
fantasy contest operator license shall apply for licensure, designate at least
one key employee, comply with all instructions, and pay a non-refundable fee in
the applicable amount: (1) Thirty thousand
dollars for a fantasy contest operator who has at least fifteen thousand
fantasy contest players in the state of Ohio who paid at least one entry fee in
the twelve months prior to the current application for licensure; (2) Fifteen thousand
dollars for a fantasy contest operator who has less than fifteen thousand but
at least ten thousand fantasy contest players in the state of Ohio who paid at
least one entry fee in the twelve months prior to the current application for
licensure; (3) Nine thousand dollars
for a fantasy contest operator who has less than ten thousand but at least five
thousand fantasy contest players in the state of Ohio who paid at least one
entry fee in the twelve months prior to the current application for licensure;
or (4) Three thousand
dollars for a fantasy contest operator who has less than five thousand fantasy
contest players in the state of Ohio who paid at least one entry fee in the
twelve months prior to the current application for licensure. (B) All fees in paragraph (A) of this
rule may be paid in equal annual installments, if a fantasy contest operator so
elects on the application. Failure to timely pay any portion of a fee required
by this rule constitutes cause for the executive director to issue an emergency
order in the manner prescribed by division (G) of section 3772.04 of the
Revised Code. (C) If the commission, at a meeting held
under section 3772.02 of the Revised Code, determines that a person is suitable
and otherwise eligible for licensure, a fantasy contest operator license may be
issued for up to three years. Any license issued for less than three years will
have the fees listed in paragraph (A) of this rule prorated to reflect the
shorter license term.
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Rule 3772-74-08 | Management company licensure.
Effective:
September 3, 2019
(A) A management company that manages the
day-to-day operations of a fantasy contest operator shall apply to obtain or
renew a fantasy contest operator license, comply with all instructions, and pay
a non-refundable fee equal to one-half of the fee charged to the fantasy
contest operator for which it is a management company. (B) All fees in paragraph (A) of this
rule may be paid in equal annual installments, if a management company so
elects on the application. Failure to timely pay any portion of a fee required
by this rule constitutes cause for the executive director to issue an emergency
order in the manner prescribed by division (G) of section 3772.04 of the
Revised Code. (C) If an applicant for a license as a
management company is related through a joint venture or controlled by or under
common control with another applicant for a license as a fantasy contest
operator for the same fantasy contest platform, with the exception of actual
costs of the review and investigation of the additional applicant, only one fee
shall be required of the applicant for that fantasy contest
platform. (D) If the commission, at a meeting held
under section 3772.02 of the Revised Code, determines that a person is suitable
and otherwise eligible for licensure, a management company license may be
issued for up to three years. Any license issued for less than three years will
have the fees described in paragraph (A) of this rule prorated to reflect the
shorter license term.
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Rule 3772-74-09 | Duty to update information.
Effective:
September 3, 2019
(A) All applicants and licensees shall
update the executive director, in writing, with any information sought in the
application that has changed from the submission of the application throughout
any period of the license that may be or has been granted, unless otherwise
directed by the commission at a meeting held under section 3772.02 of the
Revised Code. (B) All information required to be
submitted under this rule must include the name of the applicant or licensee
and license number, if applicable, and be submitted in the manner prescribed by
the executive director within ten days after the change or occurrence of the
event. (C) This rule does not prohibit the
executive director from requiring any further additional information or
updates.
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Rule 3772-74-10 | Fantasy contest operator internal procedures.
Effective:
September 3, 2019
(A) Fantasy contest operators shall draft
written internal procedures, which shall, at a minimum, include procedures for
ensuring compliance with all the following: (1) Complying with all
applicable state and federal requirements, as well as industry-standard
procedures, to protect the privacy and online security of fantasy contest
players and their accounts, including procedures preventing unauthorized
withdrawals from fantasy contest player accounts; (2) Suspending or banning
the account of fantasy contest players who violate a fantasy contest
operator's internal procedures, the rules or terms of a fantasy contest,
or fantasy contest law, applicable to a fantasy contest player; (3) Providing fantasy
contest players with free and immediate access to information on playing
responsibly and seeking assistance for compulsive behavior, including at a
minimum: (a) The national council on problem gambling's
twenty-four hour confidential helpline, the problem gambling hotline number
established under section 3772.062 of the Revised Code, or another helpline
approved by the executive director that is free of charge to the fantasy
contest player; and (b) Educational information from a reputable mental health
or addiction services organization on identifying, monitoring, and managing
compulsive behavior, including information for individuals assisting a person
in doing so; (4) Establishing the
maximum number of entries that a fantasy contest player may submit to each
fantasy contest and clearly and conspicuously notifying fantasy contest players
of what that limit is prior to the player paying any entry fee; (5) Verifying the
identity of fantasy contest players; (6) Prohibiting the
following: (a) Fantasy contest operator employees, relatives living in
the same household as those employees, and athletes, coaches, referees, and
other participants in the underlying professional sports competitions from
competing in any public fantasy contest offered by a fantasy contest operator;
and (b) Anyone from sharing material nonpublic information
gained from a fantasy contest operator with third parties; (7) Governing fantasy
contest operator employees', relatives' living in the same household
as those employees, and athletes', coaches', referees', and
other participants' competition in private fantasy contests to prohibit
the misuse of material nonpublic information gained from a fantasy contest
operator in any private fantasy contest entered; (8) Ensuring that fantasy
contest operators prohibit access to all the following: (a) Individuals under eighteen years of age; (b) Individuals who, upon request, seek to restrict
themselves from entering fantasy contests; and (c) Fantasy contest players who have been permanently
barred or whose accounts have been suspended by the operator for violating a
fantasy contest operator's internal procedures, the rules or terms of a
fantasy contest, or fantasy contest law, applicable to the fantasy contest
player; (9) Ensuring that fantasy
contest operators protect fantasy contest player funds from operational funds
in a manner consistent with division (A)(3) of section 3774.03 of the Revised
Code and that fantasy contest player funds are shielded from creditors other
than the fantasy contest players for whose benefit and protection the
segregation or reserve has been established; (10) Describing how entry
fees will be returned to fantasy contest players in the event a fantasy contest
is canceled after entry fees have been paid; (11) Detailing how
fantasy contest operators will process unclaimed funds in accordance with
Chapter 169. of the Revised Code; (12) Ensuring that
fantasy contest operators complete all the following within five business
days: (a) Deposit cash and cash equivalent prizes won from
fantasy contests into a fantasy contest player's account; (b) Fund withdrawal requests from a fantasy contest
player's account, unless the fantasy contest operator believes in good
faith that the fantasy contest player engaged in either fraudulent conduct or
other conduct that would put the operator in violation of fantasy contest
operator's internal procedures, the rules or terms of the fantasy contest,
fantasy contest law, or other legal requirements. In which case, the operator
may decline to honor the request for withdrawal for a reasonable investigatory
period until its investigation is resolved. For purposes of this provision, a
request for withdrawal will be considered honored if it is processed by the
operator but delayed by a payment processor, credit card issuer, or by the
custodian of a financial account; and (c) Requests to close a fantasy contest player's
account; (13) Detailing how
non-cash or non-cash equivalent prizes will be given or otherwise made
available to fantasy contest players; (14) Prescribing
requirements related to beginning players and highly experienced players,
including, at a minimum: (a) The definitions of a beginning player and a highly
experienced player; (b) The method by which fantasy contests operators will
clearly and conspicuously identify highly experienced players in fantasy
contests; (c) How the fantasy contest operator will offer some
fantasy contests open only to beginning players; and (d) The process by which fantasy contest operators will
offer introductory procedures for fantasy contests for beginning players, which
shall: (i) Be clearly and
conspicuously offered to a beginning player before that player has paid any
entry fee to the fantasy contest operator; (ii) Explain fantasy
contest play, what the definition of a highly experienced player is, and how to
identify highly experienced players; and (iii) Recommend beginning
player-only contests as a learning experience; (15) Operating a
voluntary restriction program for those individuals who seek to restrict
themselves from entering fantasy contests. This program shall include all the
following: (a) All notifications or restrictions offered to players,
which shall include complete exclusion and may include contest entry, entry
fee, and deposit limits, among other notifications or
restrictions; (b) How fantasy contest players may request a notification
or restriction; (c) How fantasy contest operators will clearly and
conspicuously make the program available to fantasy contest
players; (d) How fantasy contest players may request to have their
selected notification or restriction adjusted or removed, including allowing
them to have the option to adjust these notifications or restrictions to make
them more restrictive as often as they like but not allowing them to have the
option to remove or make notifications or restrictions less restrictive within
90 days of setting the notification or restriction at issue; (e) How the fantasy contest operator will keep the name and
other personal information of those participating in the program confidential.
Nothing in this provision restricts operators from sharing this information
with each other for the sole purpose of operating joint voluntary restriction
programs; (f) The duties of the fantasy contest players enrolled in
the voluntary restriction program; and (g) The duties of the fantasy contest operator with respect
to the program, including how the operator will identify and prevent those on
the program from participating in fantasy contests in violation of the selected
restriction or being targeted by the operator's
advertisements; (16) Identifying
authorized scripts that are made readily available to all fantasy contest
players and detecting and preventing unauthorized scripts and
access; (17) Creating and
following a third-party audit schedule compliant with rule 3772-74-15 of the
Administrative Code; (18) Investigating
fantasy contest player complaints that a violation of fantasy contest law has
occurred; (19) Monitoring,
identifying, investigating, correcting, and reporting to the executive director
any violations in the internal procedures adopted pursuant to this rule;
and (20) Any other internal
procedures required by the commission at a meeting held under section 3772.02
of the Revised Code. (B) Fantasy contest operators shall
submit the internal procedures required pursuant to this rule as an appendix to
each application submitted by the fantasy contest operator. (C) Fantasy contest operators who amend
these internal procedures prior to the fantasy contest operator's next
application must submit the amendments prior to or contemporaneous with when
the changes are made, with all changes tracked, in the manner prescribed by the
executive director.
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Rule 3772-74-10.1 | Initial internal procedure submissions.
Effective:
September 3, 2019
(A) Applicants for a fantasy contest
license who apply within thirty days of the effective date of this rule need
not submit the internal procedures with that application, as required by rule
3772-74-10 of the Administrative Code, so long as the internal procedures are
provided within ninety days of the effective date of this rule. (B) No licensing determination shall be
made until the applicant submits internal procedures.
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Rule 3772-74-11 | Prohibited activities.
Effective:
September 3, 2019
(A) No person required to obtain a
license under fantasy contest law shall directly or indirectly operate or
promote to Ohio consumers any fantasy contest without a valid license granted
under fantasy contest law. (B) Fantasy contest operators shall not
offer or allow any of the following: (1) Auto draft
functionality to fantasy contest players, unless otherwise approved by the
commission at a meeting held under section 3772.02 of the Revised
Code; (2) Fantasy contest
players to choose from pre-selected rosters of athletes; (3) Any means of athlete
selection or assembly that does not involve the input or control of a fantasy
contest player; or (4) Proposition selection
or fantasy contests that have the effect of mimicking proposition
selection. (C) No licensee shall operate using a
name that has not been provided in the application or a duty to
update. (D) No fantasy contest operator shall
extend lines of credit to fantasy contest players. (E) No person shall fail to timely submit
any application, form, report, or information required under fantasy contest
law or otherwise requested by the executive director. (F) No person shall make any false
statements or fail to disclose any facts requested in connection with an
application or in any communication with the commission.
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Rule 3772-74-12 | Duties of fantasy contest operators.
Effective:
September 3, 2019
In addition to all other requirements under fantasy
contest law, each fantasy contest operator shall: (A) Comply with all internal procedures
adopted pursuant to rule 3772-74-10 of the Administrative Code. (B) Publish all rules or terms of each
fantasy contest in a manner that enables a fantasy contest player to read the
rules and terms before paying an entry fee to that contest. (C) Comply with all rules or terms
described in paragraph (B) of this rule for each applicable
contest. (D) Provide documentation that fantasy
contest player funds are protected as provided for in division (A)(3) of
section 3774.03 of the Revised Code once every six months, unless otherwise
instructed by the commission, at a meeting held under section 3772.02 of the
Revised Code, and in the manner prescribed by the executive
director. (E) Ensure the retention, maintenance,
and prompt production of all records required to be kept pursuant to section
3774.04 of the Revised Code. (F) Ensure responses are promptly issued
to all inquiries or requests by the commission. (G) Notify the executive director of all
violations of fantasy contest law of which the fantasy contest operator has
knowledge or should have knowledge. (H) Train fantasy contest operator
employees in fantasy contest law and the internal procedures and other
requirements thereunder relevant to each employee's individual function,
including, if necessary, developing special instructional programs in addition
to any on-the-job instruction sufficient to make each employee knowledgeable
about the requirements and performance of all duties relating to that
employee's functions. (I) Comply with all notices or directives
from the executive director to draft, edit, or implement policies, procedures,
or practices. (J) If a fantasy contest operator intends
to cease doing business in Ohio, notify the executive director in the manner
prescribed by the executive director at least ninety days, or as soon as
practicable, before the proposed closure that the operator intends to cease
doing business and providing information regarding the date of the proposed
closure, a description of how the operator will be ensuring fantasy contest
player funds will be distributed to their rightful owners, and any other
information required.
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Rule 3772-74-13 | Duties of key employees.
Effective:
September 3, 2019
In addition to all other requirements under fantasy
contest law, each key employee shall: (A) Serve as a representative of the
fantasy contest operator. (B) Ensure all applications, notices, or
other filings under fantasy contest law are provided within the timelines
required. (C) Ensure responses are promptly issued
to all inquiries or requests by the commission. (D) Notify the executive director of all
violations of fantasy contest law of which the key employee has knowledge or
should have knowledge. (E) Comply with all notices or directives
from the executive director to draft, edit, or implement policies, procedures,
or practices.
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Rule 3772-74-14 | Duties of management company applicants or licensees.
Effective:
September 3, 2019
In addition to all other requirements under fantasy
contest law, each management company applicant or licensee shall: (A) Ensure that the fantasy contest
operator for which that person is a management company applicant or licensee is
compliant with fantasy contest law. (B) Notify the executive director of all
violations of fantasy contest law of which the management company applicant or
licensee has knowledge or should have knowledge. (C) Retain, maintain, and promptly
produce all records described in section 3774.04 of the Revised
Code. (D) Ensure responses are promptly issued
to all inquiries or requests by the commission. (E) Comply with all notices or directives
from the executive director to draft, edit, or implement policies, procedures,
or practices.
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Rule 3772-74-15 | Inspection and audits.
Effective:
September 3, 2019
(A) Fantasy contest operators shall
contract with a third party to perform an independent audit to ensure
compliance with fantasy contest law. The audit shall be performed and a copy of
the report provided to the commission at least once every licensure period,
unless otherwise instructed by the commission at a meeting held under section
3772.02 of the Revised Code. (B) Fantasy contest operators shall
contract with a third party to perform an independent financial audit. The
audit shall be performed and a copy of the report provided to the commission at
least once every twelve-month period, unless otherwise instructed by the
commission at a meeting held under section 3772.02 of the Revised
Code. (C) Any third party contracted to perform
an audit under this rule must be a certified public accountant or, when
appropriate, an independent registered certified public accounting firm and
shall be approved by the commission, at a meeting held under section 3772.02 of
the Revised Code, prior to the audit engagement. (D) The fantasy contest operator shall
ensure the qualifications, good standing, and independence of any third party
prior to engagement. The commission, at a meeting held under section 3772.02 of
the Revised Code, may deny, restrict, or condition any request for approval of
any third party and may require documentation regarding the qualifications,
good standing, and independence of the third party, as well as any other
documentation needed to process the request for approval, from the fantasy
contest operator or the third party. (E) Any audit conducted under this rule
shall be in accordance with fantasy contest law, generally accepted auditing
standards, and, when applicable, the standards of the accountancy
board. (F) The third party approved to conduct
any audit under this rule shall submit the audit results in the manner
prescribed by the executive director no later than such results have been made
available to the fantasy contest operator. (G) Audit requirements under this rule
may be waived by the commission pursuant to rule 3772-74-05 of the
Administrative Code. These waiver requests should contain documentary support
as to why the waiver is justified based upon risk, audits that have been or
will be conducted by the commission, or other good cause. Any waiver based upon
audits conducted by the commission may result in the cost of the audit being
charged to the fantasy contest operator. (H) The executive director may do the
following: (1) Require the
production of and inspect and audit the documents of all persons that conduct
or participate in conducting fantasy contests, including those that at one time
conducted or participated in the conduct of fantasy contests in this state but
have ceased doing so; and (2) Perform all other
things necessary to ensure the integrity of fantasy contests and for the
effective licensing, regulating, investigating, and penalizing of all persons
conducting or participating in the conduct of fantasy contests authorized by
fantasy contest law. (I) A person shall cooperate at all times
with the direction of the commission and shall not interfere or hinder an
inspection, audit, or investigation or allow others to interfere or hinder an
inspection, audit, or investigation. (J) All applicants and licensees consent
to inspections, searches, and seizures and to the disclosure to the commission
of non-privileged confidential records, including tax records, held by any
federal, state, or local agency, credit bureau, or financial institution and to
provide handwriting exemplars, photographs, fingerprints, and any other
information requested.
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Rule 3772-74-16 | Advertising.
Effective:
September 3, 2019
(A) Fantasy contest operator
advertisements shall: (1) Accurately depict any
representations made concerning the fantasy contest player's chances of
winning, the average number or percent of fantasy contest players who win, and
the average net winnings of fantasy contest players; (2) Include information
on playing responsibly and seeking assistance for compulsive behavior or shall
direct consumers to a reputable source for such information. If an
advertisement is not of sufficient size or duration to reasonably permit
inclusion of such information, that advertisement shall refer to a website or
application that does prominently include such information; and (3) Clearly and
conspicuously state all material or limiting terms or provide a reference where
all material or limiting terms may be found. The reference material shall be
publicly available and shall, itself, state the terms clearly and
conspicuously. (B) Fantasy contest operator
advertisements shall not: (1) Prominently depict
anyone who is under the age of eighteen; (2) Depict or imply the
endorsement of any university, college, high school, or youth sporting league,
event, or athlete; or (3) Depict fantasy
contests that are not compliant with fantasy contest law.
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Rule 3772-74-17 | Hearings.
Effective:
September 3, 2019
(A) If the executive director concludes
that administrative action should be taken against any applicant, licensee, or
any other person subject to fantasy contest law, notice of the proposed action
and an opportunity for hearing will be provided in the manner prescribed under
Chapter 119. of the Revised Code and Chapter 3772-21 of the Administrative
Code. (B) Except as provided in paragraph (C)
of this rule, all hearings and hearing procedures shall be conducted in the
manner described in Chapter 3772-21 of the Administrative Code. (C) The provisions of rule 3772-21-04 of
the Administrative Code shall not apply.
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Rule 3772-74-18 | Sanctions.
Effective:
September 3, 2019
(A) The commission may, at a meeting held
under section 3772.02 of the Revised Code, sanction any licensee, applicant, or
other person subject to the requirements of fantasy contest law for any of the
following: (1) Violating or failing
to meet any provision or requirement of fantasy contest law; (2) Engaging in any
misrepresentation or material omission; (3) Engaging in any
fraudulent act; (4) Failing to cooperate
with the commission; (5) Failing to comply
with all terms and conditions of a settlement agreement or agreed order with
the commission and any subsequent amendments or modifications
thereto; (6) Failing to comply
with the terms and conditions of a commission order or resolution and any
subsequent amendments or modifications; (7) Failing to allow the
commission access to records, to comply with the terms of a subpoena issued by
the commission, or to testify on matters about which the person may be lawfully
questioned, pursuant to rule 3772-74-04 of the Administrative Code;
or (8) Engaging in any
conduct that undermines the integrity of fantasy contests or the public's
confidence in fantasy contests. (B) The commission may, at a meeting held
under section 3772.02 of the Revised Code, impose any sanction set forth in
fantasy contest law, including any of the following: (1) Denial, non-renewal,
revocation, suspension, conditioning, or restriction of a license; (2) Revocation,
suspension, or restriction of the conduct or participation in the conduct of
fantasy contests in this state; (3) A monetary
fine; (4) A monetary civil
penalty; or (5) Any other sanction
imposed upon or agreed to by a licensee, applicant, or any other
person. (C) If the alleged violation is the
result of or results in the unlawful obtainment, maintenance, or retention of
any money or property, including funds not properly segregated pursuant to
division (A)(3) of section 3774.03 of the Revised Code, the commission may, at
a meeting held under section 3772.02 of the Revised Code, in addition to any
other penalty or fine levied under fantasy contest law, order the disgorgement
of any money or value of the property that was unlawfully obtained, maintained,
or retained. (D) The commission shall not be precluded
from finding multiple violations within a day, if each violation is the result
of separate and distinct acts. (E) The commission may hold applicants,
licensees, or other persons jointly and severally liable for violations of
fantasy contest law.
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