JEFFERSON CITY, Mo. – The Missouri Gaming Commission proposed two new rules Tuesday to implement the daily fantasy sports legislation passed during the 2016 session.
First, the commission proposed a rule that would institute the operational framework for daily fantasy contests in the state. That includes what an operator must do to obtain a license and guidelines about determining eligibility and what to do if a minor is found to be playing the game.
The second rule regulates the cash reserves required of fantasy sports operators.
The gaming commission is now accepting publicly filed comments and will hold a public hearing in November.
The rules come after the The Missouri Fantasy Sports Consumer Protection Act went into effect last weekend. The act establishes consumer protections and creates a regulatory framework for the industry, which is growing in popularity.
That act gave the gaming commission regulatory authority over the industry, including the ability to investigate and license operators. The commission also has the ability penalize businesses that violate the regulations.
To operate in the state of Missouri, sites will have to pay $10,000, or 10 percent of its revenues from Missouri for the previous year, whichever is less. They will also have an annual operation fee of $11,500 or 11.5 percent of revenues in Missouri.
These fees will fund the the regulatory actions of the commission, including the investigation and licensing of operators.
Consumer protections in the act include prohibiting contests based on college, high school and youth sports; prohibiting participants under the age of 18 and requiring operators to have age-verification procedures establishing complaint procedures and requiring licensed operators to conduct and pay for annual independent financial audits to ensure compliance with the act.
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