Montana proposal sets licensing rules for online fantasy contests

The Department of Justice would review applications and license online fantasy contest providers. The system covers providers that let people enter fantasy contests through an online account and electronic communication. Applicants would provide information and fingerprints for background checks. An initial license would cost $5,000 and last up to three years. Renewal fees would be $1,000 or $5,000, depending on the provider’s prior-year adjusted revenues. Providers would also pay a 6.75% tax on adjusted revenues, with a credit for regulatory fees paid.

Licensed providers would have to follow rules for player safety, contest integrity, and financial records. These rules would apply to providers licensed under the proposal. Providers would have to verify that Montana players are at least 18, protect money in player accounts, and block credit card payments. They would have to restrict certain employees and people involved in a real-world contest from entering related contests, offer responsible gaming features, report suspicious activity, and submit to an annual audit. Providers would have to send each audit within 180 days after the end of their fiscal year.

People under 18 would be barred from entering online fantasy sports contests. The restriction would cover anyone under 18 who enters an online fantasy sports contest. A person who violates the restriction would commit an offense under section 23-5-161.