MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Judiciary, Division A
By: Senator(s) Tindell, Moran, Simmons (12th)
AN ACT TO CREATE THE FANTASY CONTEST ACT; TO CREATE NEW SECTION 97-33-301, MISSISSIPPI CODE OF 1972, TO ENACT A SHORT TITLE; TO CREATE NEW SECTION 97-33-303, MISSISSIPPI CODE OF 1972, TO ENACT DEFINITIONS; TO CREATE NEW SECTION 97-33-305, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE OPERATOR OF A FANTASY CONTEST WITH AN ENTRY FEE MUST IMPLEMENT CERTAIN PROCEDURES, CONTRACT WITH A THIRD PARTY TO ANNUALLY PERFORM AN INDEPENDENT AUDIT TO ENSURE COMPLIANCE WITH THIS ACT AND SUBMIT THE RESULTS TO THE INSURANCE COMMISSIONER; TO CREATE NEW SECTION 97-33-307, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT THE OPERATOR OF A FANTASY CONTEST WITH AN ENTRY FEE MUST REGISTER UNDER THE ACT; TO CREATE NEW SECTION 97-33-309, MISSISSIPPI CODE OF 1972, TO PROVIDE A CIVIL PENALTY FOR VIOLATIONS OF THIS ACT AND TO PROVIDE THAT CERTAIN CIVIL AND CRIMINAL PENALTIES SHALL NOT APPLY TO FANTASY CONTEST OPERATORS WHO COMPLY WITH THE PROVISIONS OF THIS ACT; TO CREATE NEW SECTION 97-33-311, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE GAMING CONTROL ACT SHALL NOT APPLY TO FANTASY CONTESTS; TO AMEND SECTIONS 97-33-1 AND 97-33-8, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 97-33-301, Mississippi Code of 1972:
97-33-301. This act shall be known as the "Fantasy Contest Act."
SECTION 2. The following shall be codified as Section 97-33-303, Mississippi Code of 1972:
97-33-303. As used in this act:
(a) "Confidential information" means information related to the play of a fantasy contest by fantasy contest players obtained as a result of or by virtue of a person's employment.
(b) "Entry fee" means cash or cash equivalent that is required to be paid by a fantasy contest player to a fantasy contest operator to participate in a paid fantasy contest.
(c) "Fantasy contest" means a fantasy or simulated game or contest in which:
(i) The value of all prizes and awards offered to winning players is established and made known to the players in advance of the contest;
(ii) All winning outcomes reflect the relative knowledge and skill of the players and are determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sporting events; and
(iii) Winning outcomes are not based on the score,
point spread, or any performance of any single actual sports team or combination of such teams or solely on any single performance of an individual athlete in any single actual sporting event.
(d) "Fantasy contest operator" means a person or entity that offers fantasy contests with an entry fee and for a cash prize to one hundred (100) or more members of the general public.
(e) "Fantasy contest player" or "player" means a person who participates in a fantasy contest offered by a fantasy contest operator.
(f) "Office" means the Commissioner of Insurance as set forth in Section 83-1-3.
SECTION 3. The following shall be codified as Section 97-33-305, Mississippi Code of 1972:
97-33-305. (1) Fantasy contests with an entry fee are legal in this state. A fantasy contest operator shall comply with the provisions of this section.
(2) A fantasy contest operator must implement procedures for fantasy contests with an entry fee that are intended to:
(a) Prevent employees of the fantasy contest operator, and relatives living in the same household with the employees, from competing in public fantasy contests offered by a fantasy contest operator in which the operator offers a cash prize;
(b) Prevent sharing of confidential information that could affect the fantasy contest play with third parties until the information is made publicly available;
(c) Prevent the fantasy contest operator from participating in a fantasy contest he or she offers;
(d) Verify that a fantasy contest player in a fantasy contest is eighteen (18) years of age or older;
(e) Ensure that individuals who participate or officiate in a game or contest that is the subject of a fantasy contest will be restricted from entering a fantasy contest that is determined, in whole or in part, on the accumulated statistical results of a team of individuals in a fantasy contest in which he or she is a player;
(f) Allow individuals to restrict themselves from entering a fantasy contest upon request and provide reasonable steps to prevent the person from entering fantasy contests offered by the operator;
(g) Disclose the number of entries that a fantasy contest player may submit to each fantasy contest and provide reasonable steps to prevent players from submitting more than the allowable number; and
(h) Segregate fantasy contest player funds from operational funds and maintain a reserve in the form of cash, cash equivalents, an irrevocable letter of credit, a bond, or a combination thereof, in the amount of the deposits made to the accounts of fantasy contest players for the benefit and protection of the funds held in the accounts.
(3) A fantasy contest operator offering fantasy contests with an entry fee in this state must contract with a third party to annually perform an independent audit, to ensure compliance with this section and submit the results of the audit to the office.
SECTION 4. The following shall be codified as Section 97-33-307, Mississippi Code of 1972:
97-33-307. A contest operator offering fantasy contests to be played by persons in this state must register with the office to conduct fantasy contests within this state. The initial registration shall include a surety bond in the amount of One Hundred Thousand Dollars ($100,000.00), payable to the state, furnished by a corporate surety authorized to do business in the state. The annual registration fee is Thirty Thousand Dollars ($30,000.00), or five percent (5%) of the total amount of entry fees collected by a contest operator from the operation of fantasy contests in this state less the amount of cash or cash equivalents paid to contest participants, whichever may be greater. Before receiving any renewal registration, the contest operator shall provide written evidence to the office of the actual entry fees collected and cash or cash equivalents paid to contest participants during the previous period of registration. All funds collected shall be deposited into the General Fund.
SECTION 5. The following shall be codified as Section 97-33-309, Mississippi Code of 1972:
97-33-309. A person, firm, corporation, association, agent or employee who violates this act shall be subject to a civil penalty of not more than Ten Thousand Dollars ($10,000.00) for each violation, which shall accrue to the state and may be recovered in a civil action brought by the office.
SECTION 6. The following shall be codified as Section 97-33-311, Mississippi Code of 1972:
97-33-311. The Gaming Control Act shall not apply to fantasy contests.
SECTION 7. Section 97-33-1, Mississippi Code of 1972, is amended as follows:
97-33-1. (1) Except as otherwise provided in Section 97-33-8, if any person shall encourage, promote or play at any game, play or amusement, other than a fight or fighting match between dogs, for money or other valuable thing, or shall wager or bet, promote or encourage the wagering or betting of any money or other valuable things, upon any game, play, amusement, cockfight, Indian ball play or duel, other than a fight or fighting match between dogs, or upon the result of any election, event or contingency whatever, upon conviction thereof, he shall be fined in a sum not more than Five Hundred Dollars ($500.00); and, unless such fine and costs be immediately paid, shall be imprisoned for any period not more than ninety (90) days. However, this section shall not apply to betting, gaming or wagering:
(a) On a cruise vessel as defined in Section 27-109-1 whenever such vessel is in the waters within the State of Mississippi, which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, including the Mississippi Sound, St. Louis Bay, Biloxi Bay and Pascagoula Bay, and in which the registered voters of the county in which the port is located have not voted to prohibit such betting, gaming or wagering on cruise vessels as provided in Section 19-3-79;
(b) In a structure located, in whole or in part, on shore in any of the three (3) most southern counties in the State of Mississippi in which the registered voters of the county have voted to allow such betting, gaming or wagering on cruise vessels as provided in Section 19-3-79, if:
(i) The structure is owned, leased or controlled by a person possessing a gaming license, as defined in Section 75-76-5, to conduct legal gaming on a cruise vessel under paragraph (a) of this section;
(ii) The part of the structure in which licensed gaming activities are conducted is located entirely in an area which is located no more than eight hundred (800) feet from the mean high-water line (as defined in Section 29-15-1) of the waters within the State of Mississippi, which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, including the Mississippi Sound, St. Louis Bay, Biloxi Bay and Pascagoula Bay, or, with regard to Harrison County only, no farther north than the southern boundary of the right-of-way for U.S. Highway 90, whichever is greater; and
(iii) In the case of a structure that is located in whole or part on shore, the part of the structure in which licensed gaming activities are conducted shall lie adjacent to state waters south of the three (3) most southern counties in the State of Mississippi, including the Mississippi Sound, St. Louis Bay, Biloxi Bay and Pascagoula Bay. When the site upon which the structure is located consists of a parcel of real property, easements and rights-of-way for public streets and highways shall not be construed to interrupt the contiguous nature of the parcel, nor shall the footage contained within the easements and rights-of-way be counted in the calculation of the distances specified in subparagraph (ii);
(c) On a vessel as defined in Section 27-109-1 whenever such vessel is on the Mississippi River or navigable waters within any county bordering on the Mississippi River, and in which the registered voters of the county in which the port is located have not voted to prohibit such betting, gaming or wagering on vessels as provided in Section 19-3-79; or
(d) That is legal under the laws of the State of Mississippi.
(2) A Fantasy Contest as defined in Section 97-33-303 shall not constitute gaming or gambling under the laws of the State of Mississippi.
SECTION 8. Section 97-33-8, Mississippi Code of 1972, is amended as follows:
97-33-8. (1) The provisions of this section are intended to clarify that the operation of "Internet sweepstakes cafes" is an illegal gambling activity under state law.
(2) It shall be unlawful for any person or entity to
possess, own, control, display, operate or have a financial interest in an electronic video monitor that:
(a) Is offered or made available to a person to play or participate in a simulated gambling program in return for direct or indirect consideration, including consideration associated with a product, service or activity other than the simulated gambling program; and
(b) The person who plays or participates in the simulated gambling program may become eligible to win, redeem or otherwise obtain a cash or cash-equivalent prize, whether or not the eligibility for or value of the prize is determined by or has any relationship to the outcome or play of the program.
(3) As used in this section, the following words and phrases shall have the meanings ascribed in this subsection, unless the context clearly indicates otherwise:
(a) "Simulated gambling program" means any method intended to be used by a person playing, participating or interacting with an electronic video monitor that is offered by another person or entity; that directly or indirectly implements the predetermination of a cash or cash-equivalent prize, or otherwise connects the player with the cash or cash-equivalent prize; and that is not legal under the Mississippi Gaming Control Act.
(b) "Consideration associated with a product, service or activity other than the simulated gambling program" means money or other value collected for a product, service or activity that is offered in any direct or indirect relationship to playing or participating in the simulated gambling program. The term includes consideration paid for Internet access or computer time, or a sweepstakes entry.
(c) "Electronic video monitor" means any unit, mechanism, computer or other terminal, or device that is capable of displaying moving or still images.
(4) Any person or entity violating the provisions of this section, upon conviction, shall be guilty of a misdemeanor and fined not more than One Thousand Dollars ($1,000.00) or imprisoned for not less than one (1) year, or both.
(5) The provisions of this section shall not apply to:
(a) Any lawful activity that is conducted for the primary purpose of entertaining children under the age of eighteen (18) years, during which money is paid for a token or chip that is used to play an electronic or other game, with the winner of the game earning tickets that can be exchanged for prizes;
(b) Any lawful
marketing promotion, contest, prize or sweepstakes that is designed to attract
consumer attention to a specific product or service which is offered for sale
by the manufacturer, distributor, vendor or retailer of the product or service; * * *
(c) Any promotional
activity as defined in Section 75-76-5 that is conducted by a gaming licensee * * *; or
(d) Any lawful fantasy contest with a fee as described in Sections 97-33-301 through 97-33-311 of this act.
SECTION 9. This act shall take effect and be in force from and after its passage.