(a) For the purposes of this section:

(1) “Entry fee” means the amount of cash or cash equivalent that is required to be paid by a fantasy contest player to a fantasy contest operator to participate in a fantasy contest;

(2) “Fantasy contest” means any online fantasy or simulated game or contest with an entry fee in which: (A) The value of all prizes and awards offered to winning fantasy contest players is established and made known to the players in advance of the game or contest; (B) all winning outcomes reflect the 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 (C) no winning outcome is based on the score, point spread or any performance of any single actual team or combination of teams or solely on any single performance of an individual athlete or player in any single actual sporting event. Fantasy contests shall not include lottery games;

(3) “Fantasy contest operator” means a person or entity that operates a fantasy contest and offers such fantasy contest to members of the general public in the state;

(4) “Fantasy contest player” means a person who participates in a fantasy contest offered by a fantasy contest operator;

(5) “Gross receipts” means the amount equal to the total of all entry fees that a fantasy contest operator collects from all fantasy contest players, less the total of all sums paid out as prizes to all fantasy contest players, multiplied by the location percentage;

(6) “Location percentage” means the percentage rounded to the nearest tenth of a per cent of the total of entry fees collected from fantasy contest players located in the state, divided by the total of entry fees collected from all fantasy contest players;

(7) “Mashantucket Pequot memorandum of understanding” means the memorandum of understanding entered into by and between the state and the Mashantucket Pequot Tribe on January 13, 1993, as amended on April 30, 1993;

(8) “Mashantucket Pequot procedures” means the Final Mashantucket Pequot Gaming Procedures prescribed by the Secretary of the United States Department of the Interior pursuant to Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 56 Federal Register 24996 (May 31, 1991);

(9) “Mohegan compact” means the Tribal-State Compact entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994; and

(10) “Mohegan memorandum of understanding” means the memorandum of understanding entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994.

(b) The provisions of this section shall not be effective unless the following conditions have been met:

(1) The Governor enters into amendments to the Mashantucket Pequot procedures and to the Mashantucket Pequot memorandum of understanding with the Mashantucket Pequot Tribe and amendments to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut concerning the authorization of fantasy contests in the state.

(2) The amendments to the Mashantucket Pequot procedures and the Mohegan compact shall include a provision that the authorization of fantasy contests in the state does not terminate the moratorium against the operation of video facsimile games by the Mashantucket Pequot Tribe and Mohegan Tribe of Indians of Connecticut on each tribe’s reservation.

(3) The amendments to each tribe’s memorandum of understanding shall include a provision that the authorization of fantasy contests in the state does not relieve each tribe from each tribe’s obligation to contribute a percentage of the gross operating revenues of video facsimile games to the state as provided in each tribe’s memorandum of understanding.

(4) The amendments to the Mashantucket Pequot procedures, the Mashantucket Pequot memorandum of understanding, the Mohegan compact and the Mohegan memorandum of understanding are approved or deemed approved by the Secretary of the United States Department of the Interior pursuant to the federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its implementing regulations. If such approval is overturned by a court in a final judgment, which is not appealable, the authorization provided under this section shall cease to be effective.

(5) The amendments to the Mashantucket Pequot procedures and to the Mohegan compact are approved by the General Assembly pursuant to section 3-6c.

(6) The amendments to the Mashantucket Pequot memorandum of understanding and to the Mohegan memorandum of understanding are approved by the General Assembly pursuant to the process described in section 3-6c.

(c) Not later than July 1, 2018, the Commissioner of Consumer Protection shall adopt regulations, in accordance with the provisions of chapter 54, regarding the operation of, participation in and advertisement of fantasy contest in the state. Such regulations shall protect fantasy contest players who pay an entry fee to play fantasy contests from unfair or deceptive acts or practices. Such regulations shall include, but need not be limited to: (1) A prohibition on fantasy contest operators allowing persons under the age of eighteen to participate in a fantasy contest offered by such operators; (2) protections for fantasy contest players’ funds on deposit with fantasy contest operators; (3) requirements regarding truthful advertising by fantasy contest operators; (4) procedures to ensure the integrity of fantasy contests offered by fantasy contest operators; (5) procedures to ensure that fantasy contest operators provide fantasy contest players with: (A) Information regarding responsible playing and places to seek assistance for addictive or compulsive behavior, and (B) protections against compulsive behavior; and (6) reporting requirements and procedures to demonstrate eligibility for a reduction of the initial registration fee and annual registration renewal fee pursuant to subsection (d) of this section.

(d) (1) Not later than sixty days after the adoption of regulations pursuant to subsection (c) of this section, and thereafter, each fantasy contest operator that operates fantasy contests in the state shall register annually with the Commissioner of Consumer Protection on a form prescribed by the commissioner. Each fantasy contest operator shall submit an initial registration fee of fifteen thousand dollars and an annual registration renewal fee of fifteen thousand dollars, except that the commissioner shall reduce the initial registration fee and annual registration fee so that such fees do not exceed ten per cent of the gross receipts of such operator for the registration period.

(2) To demonstrate the eligibility of a fantasy contest operator for a reduction of the initial registration fee or annual registration renewal fee pursuant to subdivision (1) of this subsection, the fantasy contest operator shall provide to the commissioner, in a manner prescribed by the commissioner, an estimation of the gross receipts such operator expects to receive in the upcoming registration period. Prior to renewing a registration where such operator paid a reduced registration fee for the previous registration period, or after a registration period where such operator should have paid a reduced fee for the previous registration period, such operator shall submit to the commissioner, in a manner prescribed by the commissioner, the actual amount of gross receipts received by such operator in the previous registration period. The commissioner shall calculate the difference, if any, between the estimated gross receipts and the actual gross receipts and determine if the registration fee previously paid by such operator was the correct amount. If such operator paid an amount in excess of the amount determined to be the correct amount of the registration fee, the commissioner shall refund such operator accordingly or credit such amount against the registration fee for the upcoming registration period, provided such operator renews his or her registration. If such operator did not pay the amount determined to be the correct amount of the registration fee, such operator shall pay to the commissioner the difference between the correct amount and the registration fee previously paid.

(e) Any person who violates any provision of this section or any regulation adopted pursuant to subsection (c) of this section shall be fined not more than one thousand dollars for each violation.

(June Sp. Sess. P.A. 17-2, S. 649.)

History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.