<a id="pl.1.3"></a><var>1.3</var>2014, sections 541.20; 541.21; 609.761, by adding a subdivision; proposing <br/>
<a id="pl.1.4"></a><var>1.4</var>coding for new law in Minnesota Statutes, chapter 325F.<br/>
<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>    Section 1. <b>[325F.9901] CONSUMER PROTECTION; FANTASY SPORTS.</b><br/>
<a id="pl.1.7"></a><var>1.7</var>    Subdivision 1. <b>Fantasy game operation requirements.</b> A game operator offering <br/>
<a id="pl.1.8"></a><var>1.8</var>a fantasy game with an entry fee in this state must implement commercially reasonable <br/>
<a id="pl.1.9"></a><var>1.9</var>procedures to:<br/>
<a id="pl.1.10"></a><var>1.10</var>(1) prevent employees of the game operator and relatives living in the same <br/>
<a id="pl.1.11"></a><var>1.11</var>household as employees of the game operator from competing in any fantasy game with an <br/>
<a id="pl.1.12"></a><var>1.12</var>entry fee offered by any game operator in which the operator offers a cash prize over $5;<br/>
<a id="pl.1.13"></a><var>1.13</var>(2) prevent disclosure of gaming information that could affect fantasy game play <br/>
<a id="pl.1.14"></a><var>1.14</var>before the information is made publicly available;<br/>
<a id="pl.1.15"></a><var>1.15</var>(3) prevent a game operator employee from being a participant in a fantasy game <br/>
<a id="pl.1.16"></a><var>1.16</var>the game operator offers;<br/>
<a id="pl.1.17"></a><var>1.17</var>(4) verify that contest participants are 18 years of age through the use of a <br/>
<a id="pl.1.18"></a><var>1.18</var>commercially available database or aggregate of databases that is regularly used <br/>
<a id="pl.1.19"></a><var>1.19</var>by government and businesses for the purpose of age and identity verification and <br/>
<a id="pl.1.20"></a><var>1.20</var>authentication;<br/>
<a id="pl.1.21"></a><var>1.21</var>(5) ensure that an individual who participates as a player or official in a game or <br/>
<a id="pl.1.22"></a><var>1.22</var>contest that is the subject of a fantasy game will be restricted from entering a fantasy game <br/>
<a id="pl.1.23"></a><var>1.23</var>that is determined, in whole or in part, on the accumulated statistical results of a team of <br/>
<a id="pl.1.24"></a><var>1.24</var>individuals in the game or contest in which the individual is a participant;<br/>
<a id="pl.2.1"></a><var>2.1</var>(6) make available on the operator's Web site information about resources relating to <br/>
<a id="pl.2.2"></a><var>2.2</var>compulsive behavior and where to seek assistance for compulsive behavior;<br/>
<a id="pl.2.3"></a><var>2.3</var>(7) make available via Web site, telephone, or online chat means to allow individuals <br/>
<a id="pl.2.4"></a><var>2.4</var>to irrevocably restrict their ability to enter a fantasy game and select the length of time <br/>
<a id="pl.2.5"></a><var>2.5</var>restrictions will be in place;<br/>
<a id="pl.2.6"></a><var>2.6</var>(8) disclose the number of entries a single fantasy game player may submit to <br/>
<a id="pl.2.7"></a><var>2.7</var>each fantasy game with an entry fee and take reasonable steps to prevent a player from <br/>
<a id="pl.2.8"></a><var>2.8</var>submitting more than the allowable number;<br/>
<a id="pl.2.9"></a><var>2.9</var>(9) for the benefit and protection of fantasy game players' funds held in fantasy game <br/>
<a id="pl.2.10"></a><var>2.10</var>accounts, segregate player funds from operational funds and maintain a reserve in the <br/>
<a id="pl.2.11"></a><var>2.11</var>form of cash, cash equivalents, an irrevocable letter of credit, a bond, security deposits <br/>
<a id="pl.2.12"></a><var>2.12</var>at merchant banks and payment processors, or a combination thereof in the amount of <br/>
<a id="pl.2.13"></a><var>2.13</var>the balance available for withdrawal in player accounts;<br/>
<a id="pl.2.14"></a><var>2.14</var>(10) offer access to the fantasy game player's play history, including a summary of <br/>
<a id="pl.2.15"></a><var>2.15</var>entry fees expended, games played and previous line-ups, and prizes awarded;<br/>
<a id="pl.2.16"></a><var>2.16</var>(11) offer access to account details, including all deposit amounts, withdrawal <br/>
<a id="pl.2.17"></a><var>2.17</var>amounts, and bonus or promotion information, including how much is left on any pending <br/>
<a id="pl.2.18"></a><var>2.18</var>bonus or promotion and how much has been released to the fantasy game player;<br/>
<a id="pl.2.19"></a><var>2.19</var>(12) prevent a player from using a proxy server to enter the game operator's platform;<br/>
<a id="pl.2.20"></a><var>2.20</var>(13) prominently publish the rules governing each fantasy game with an entry fee;<br/>
<a id="pl.2.21"></a><var>2.21</var>(14) prohibit the use of third-party scripts, and prohibit a person found to be using <br/>
<a id="pl.2.22"></a><var>2.22</var>a third-party script from playing in a fantasy game offered by the operator for a period <br/>
<a id="pl.2.23"></a><var>2.23</var>of not less than one year;<br/>
<a id="pl.2.24"></a><var>2.24</var>(15) develop and prominently publish procedures by which a person may file a <br/>
<a id="pl.2.25"></a><var>2.25</var>complaint with the operator; and<br/>
<a id="pl.2.26"></a><var>2.26</var>(16) disclose the terms of all promotional offers at the time the offers are advertised, <br/>
<a id="pl.2.27"></a><var>2.27</var>and provide full disclosures of limitations on the offer before a person provides financial <br/>
<a id="pl.2.28"></a><var>2.28</var>consideration in exchange for the offer.<br/>
<a id="pl.2.29"></a><var>2.29</var>    Subd. 2. <b>Definitions.</b> For purposes of this section, "game operator," "fantasy game," <br/>
<a id="pl.2.30"></a><var>2.30</var>and "entry fee" have the meanings given them under section 609.761, subdivision 7. <br/>
<a id="pl.2.31"></a><var>2.31</var>"Commissioner" means the commissioner of public safety. "Script" means commands <br/>
<a id="pl.2.32"></a><var>2.32</var>that a computer program can execute to automate processes on a game operator's Web <br/>
<a id="pl.2.33"></a><var>2.33</var>site or application.<br/>
<a id="pl.2.34"></a><var>2.34</var>    Subd. 3. <b>Registration.</b> (a) A game operator shall register with the Department of <br/>
<a id="pl.2.35"></a><var>2.35</var>Public Safety within 30 days of offering a fantasy game to a person in Minnesota. The <br/>
<a id="pl.2.36"></a><var>2.36</var>registration statement must include:<br/>
<a id="pl.3.1"></a><var>3.1</var>(1) the business name, address, and contact information of the game operator;<br/>
<a id="pl.3.2"></a><var>3.2</var>(2) the game operator's Web site address;<br/>
<a id="pl.3.3"></a><var>3.3</var>(3) the names and addresses of the game operator's officers, directors, and any <br/>
<a id="pl.3.4"></a><var>3.4</var>stakeholder with more than 15 percent interest in the operator;<br/>
<a id="pl.3.5"></a><var>3.5</var>(4) the name and contact information of the game operator's independent auditor;<br/>
<a id="pl.3.6"></a><var>3.6</var>(5) the game operator's tax identification number; and<br/>
<a id="pl.3.7"></a><var>3.7</var>(6) proof of the game operator's financial security in an amount sufficient to comply <br/>
<a id="pl.3.8"></a><var>3.8</var>with the provisions of subdivision 1, clause (9).<br/>
<a id="pl.3.9"></a><var>3.9</var>(b) The registration must be submitted by January 15 of every year, and within <br/>
<a id="pl.3.10"></a><var>3.10</var>30 days if there is a material change in the operator's registration information. The <br/>
<a id="pl.3.11"></a><var>3.11</var>commissioner may not issue a registration under this chapter or may revoke a registration <br/>
<a id="pl.3.12"></a><var>3.12</var>if the operator fails to comply with the requirements of this section.<br/>
<a id="pl.3.13"></a><var>3.13</var>(c) The commissioner may charge an annual registration fee of $500 that adequately <br/>
<a id="pl.3.14"></a><var>3.14</var>covers the cost of issuing the registration and other registration duties. The fees shall <br/>
<a id="pl.3.15"></a><var>3.15</var>be deposited in an account in the special revenue fund and are appropriated to the <br/>
<a id="pl.3.16"></a><var>3.16</var>commissioner for the purposes of this subdivision.<br/>
<a id="pl.3.17"></a><var>3.17</var>    Subd. 4. <b>Audits.</b> A game operator shall contract annually with a third party to <br/>
<a id="pl.3.18"></a><var>3.18</var>perform an independent audit, consistent with the standards established by the Public <br/>
<a id="pl.3.19"></a><var>3.19</var>Company Accounting Oversight Board or using the Statements on Accounting Standards <br/>
<a id="pl.3.20"></a><var>3.20</var>issued by the Audit Standards Board of the American Institute of Certified Public <br/>
<a id="pl.3.21"></a><var>3.21</var>Accountants, to ensure compliance with this section. The game operator must submit the <br/>
<a id="pl.3.22"></a><var>3.22</var>audit to the commissioner by March 15 each year for examination and inspection.<br/>
<a id="pl.3.23"></a><var>3.23</var>    Subd. 5. <b>Civil remedies.</b> Any person injured by a violation of this section may bring <br/>
<a id="pl.3.24"></a><var>3.24</var>a civil action and recover actual damages, together with costs and disbursements, including <br/>
<a id="pl.3.25"></a><var>3.25</var>reasonable attorney fees, and receive other equitable relief as determined by the court.<br/>
<a id="pl.3.26"></a><var>3.26</var>    Subd. 6. <b>Criminal penalty.</b> Any person who knowingly violates the provisions of <br/>
<a id="pl.3.27"></a><var>3.27</var>this section is guilty of a gross misdemeanor.<br/>
<a id="pl.3.28"></a><var>3.28</var>    Subd. 7. <b>Investigations and powers.</b> The commissioner may designate certain <br/>
<a id="pl.3.29"></a><var>3.29</var>division employees who are authorized to investigate and arrest any person who is <br/>
<a id="pl.3.30"></a><var>3.30</var>suspected of violating any provision of this section and to conduct searches and seizures <br/>
<a id="pl.3.31"></a><var>3.31</var>to enforce any of those laws. Any employee authorized by this subdivision to make an <br/>
<a id="pl.3.32"></a><var>3.32</var>arrest must be licensed under sections 626.84 to 626.863. Nothing in this section limits <br/>
<a id="pl.3.33"></a><var>3.33</var>the authority of the division to exercise any other power specified under chapter 240, <br/>
<a id="pl.3.34"></a><var>3.34</var>299L, 340A, 349, or 349A.<br/>
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<a id="bill.0.2.0"></a><a id="pl.4.1"></a><var>4.1</var>    Sec. 2. Minnesota Statutes 2014, section 541.20, is amended to read:<br/>
<a id="pl.4.2"></a><var>4.2</var><b>541.20 RECOVERY OF MONEY LOST.</b><br/>
<a id="pl.4.3"></a><var>4.3</var>Every person who, by playing at cards, dice, or other game, or by betting on the <br/>
<a id="pl.4.4"></a><var>4.4</var>hands or sides of such as are gambling, shall lose to any person so playing or betting <br/>
<a id="pl.4.5"></a><var>4.5</var>any sum of money or any goods, and pays or delivers the same, or any part thereof, to <br/>
<a id="pl.4.6"></a><var>4.6</var>the winner, may sue for and recover such money by a civil action, before any court <br/>
<a id="pl.4.7"></a><var>4.7</var>of competent jurisdiction. For purposes of this section, gambling shall not include <br/>
<a id="pl.4.8"></a><var>4.8</var>pari-mutuel wagering conducted under a license issued pursuant to chapter 240, purchase <br/>
<a id="pl.4.9"></a><var>4.9</var>or sale of tickets in the state lottery, or gambling authorized under chapters 349 and 349A, <br/>
<a id="pl.4.10"></a><var>4.10</var>or participation in a fantasy game as defined under section 609.761, subdivision 7.<br/>
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<a id="bill.0.3.0"></a><a id="pl.4.11"></a><var>4.11</var>    Sec. 3. Minnesota Statutes 2014, section 541.21, is amended to read:<br/>
<a id="pl.4.12"></a><var>4.12</var><b>541.21 COMMITMENTS FOR GAMBLING DEBT VOID.</b><br/>
<a id="pl.4.13"></a><var>4.13</var>Every note, bill, bond, mortgage, or other security or conveyance in which the whole <br/>
<a id="pl.4.14"></a><var>4.14</var>or any part of the consideration shall be for any money or goods won by gambling or <br/>
<a id="pl.4.15"></a><var>4.15</var>playing at cards, dice, or any other game whatever, or by betting on the sides or hands <br/>
<a id="pl.4.16"></a><var>4.16</var>of any person gambling, or for reimbursing or repaying any money knowingly lent or <br/>
<a id="pl.4.17"></a><var>4.17</var>advanced at the time and place of such gambling or betting, or lent and advanced for any <br/>
<a id="pl.4.18"></a><var>4.18</var>gambling or betting to any persons so gambling or betting, shall be void and of no effect <br/>
<a id="pl.4.19"></a><var>4.19</var>as between the parties to the same, and as to all persons except such as hold or claim under <br/>
<a id="pl.4.20"></a><var>4.20</var>them in good faith, without notice of the illegality of the consideration of such contract or <br/>
<a id="pl.4.21"></a><var>4.21</var>conveyance. The provisions of this section shall not apply to: <br/>
<a id="pl.4.22"></a><var>4.22</var>(1) pari-mutuel wagering conducted under a license issued pursuant to chapter 240; <br/>
<a id="pl.4.23"></a><var>4.23</var>(2) purchase of tickets in the state lottery under chapter 349A; <br/>
<a id="pl.4.24"></a><var>4.24</var>(3) gaming activities conducted pursuant to the Indian Gaming Regulatory Act, <br/>
<a id="pl.4.25"></a><var>4.25</var>United States Code, title 25, section 2701 et seq.; or <br/>
<a id="pl.4.26"></a><var>4.26</var>(4) lawful gambling activities permitted under chapter 349; or<br/>
<a id="pl.4.27"></a><var>4.27</var>(5) participation in a fantasy game as defined under section 609.761, subdivision 7.<br/>
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<a id="bill.0.4.0"></a><a id="pl.4.28"></a><var>4.28</var>    Sec. 4. Minnesota Statutes 2014, section 609.761, is amended by adding a subdivision <br/>
<a id="pl.4.29"></a><var>4.29</var>to read:<br/>
<a id="pl.4.30"></a><var>4.30</var>    Subd. 7. <b>Fantasy games.</b> (a) For purposes of this subdivision, the following terms <br/>
<a id="pl.4.31"></a><var>4.31</var>have the meanings given them:<br/>
<a id="pl.4.32"></a><var>4.32</var>(1) "entry fee" means cash or cash equivalent that is required to be paid by a fantasy <br/>
<a id="pl.4.33"></a><var>4.33</var>game player to a game operator to participate in a fantasy game;<br/>
<a id="pl.5.1"></a><var>5.1</var>(2) "commissioner" means the commissioner of public safety or a person to whom <br/>
<a id="pl.5.2"></a><var>5.2</var>the commissioner has delegated authority;<br/>
<a id="pl.5.3"></a><var>5.3</var>(3) "fantasy game" means a fantasy contest that meets the following conditions:<br/>
<a id="pl.5.4"></a><var>5.4</var>(i) the value of all prizes and awards offered to winning game participants are <br/>
<a id="pl.5.5"></a><var>5.5</var>established and made known to the game participants in advance of the fantasy game;<br/>
<a id="pl.5.6"></a><var>5.6</var>(ii) all winning outcomes are determined predominantly by the accumulated <br/>
<a id="pl.5.7"></a><var>5.7</var>statistical results of the performance of individual athletes in sporting events;<br/>
<a id="pl.5.8"></a><var>5.8</var>(iii) no winning outcome is based on the score, point spread, or performance or <br/>
<a id="pl.5.9"></a><var>5.9</var>performances of a single team or combination of teams or solely on a single performance <br/>
<a id="pl.5.10"></a><var>5.10</var>of an individual athlete or player in a single event; and<br/>
<a id="pl.5.11"></a><var>5.11</var>(iv) the result of a fantasy game is not based on any athlete participating on a team <br/>
<a id="pl.5.12"></a><var>5.12</var>sponsored by a secondary or postsecondary educational organization; and<br/>
<a id="pl.5.13"></a><var>5.13</var>(4) "game operator" means a person that offers a fantasy game for a cash prize or <br/>
<a id="pl.5.14"></a><var>5.14</var>other prize of value for commercial purposes.<br/>
<a id="pl.5.15"></a><var>5.15</var>(b) A fantasy game conducted by a game operator registered with the commissioner <br/>
<a id="pl.5.16"></a><var>5.16</var>of public safety under section 325F.9901, subdivision 3, is a bona fide contest for the <br/>
<a id="pl.5.17"></a><var>5.17</var>determination of skill under section 609.75, subdivision 3, clause (3), and is not a violation <br/>
<a id="pl.5.18"></a><var>5.18</var>of sections 609.75, 609.755, and 609.76.<br/>
<a id="pl.5.19"></a><var>5.19</var>(c) Sections 609.755 and 609.76 do not prohibit a game operator registered with the <br/>
<a id="pl.5.20"></a><var>5.20</var>commissioner of public safety under section 325F.9901, subdivision 3, from offering a <br/>
<a id="pl.5.21"></a><var>5.21</var>fantasy game.<br/>