R 432.532h Duty of fantasy contest operators and licensed management companies.

Rule 532h. (1) A fantasy contest operator or licensed management company must adopt commercially reasonable procedures and internal controls to prevent a person from establishing a fantasy contest player account if the person is prohibited from establishing a fantasy contest player account under R 432.532a to R 432.532g, subject to both of the following: (a) If an individual has a fantasy contest player account at the time of exclusion under R 432.532c, the fantasy contest player account and funds in the account must be addressed as follows: (i) The fantasy contest player account must be suspended, closed, or otherwise restricted so that no further deposits can be made and no further fantasy contest entries can be submitted until such time as the exclusion is no longer in effect. (ii) Any funds remaining in the fantasy contest player account must be returned to the individual or seized as directed by the board. (b) If an individual has a fantasy contest player account at the time of self-restriction under R 432.532d, the fantasy contest player account and funds in the account must be addressed as follows: (i) The fantasy contest player account must be suspended, closed, or otherwise restricted so that no further deposits can be made and no further fantasy contest entries can be submitted until such time as the self-restriction is no longer in effect. (ii) The individual must be allowed to withdraw all funds in the fantasy contest player account, except as otherwise provided in these rules or any other applicable state or federal law. (2) A fantasy contest operator or licensed management company must adopt commercially reasonable procedures and internal controls to prevent a person from entering or participating in any fantasy contest the person is prohibited from entering or participating in under R 432.532a to R 432.532g, or from entering or participating in a fantasy contest in any other manner in violation of R 432.532a to R 432.532g, subject to both of the following: (a) If an individual previously submitted fantasy contest entries that are pending at the time of exclusion under R 432.532c, the fantasy contest entries must be cancelled. The corresponding entry fees must be refunded to the individual or seized as directed by the board. (b) If an individual previously submitted fantasy contest entries that are pending at the time of self-restriction under R 432.532d, the fantasy contest entries must be cancelled and the corresponding entry fees must be refunded to the individual. (3) A fantasy contest operator or licensed management company must take the following action regarding any person that knowingly establishes a fantasy contest player account or enters or participates in a fantasy contest in any manner in violation of R 432.532a to R 432.532g: (a) Except as otherwise provided in subdivision (b) of this subrule, the fantasy contest operator or licensed management company must do all of the following, as applicable: (i) Suspend the person’s fantasy contest player account for a period considered appropriate by the fantasy contest operator or licensed management company. (ii) Cancel any fantasy contest entries submitted by the person for any fantasy contest the person is prohibited from entering or participating in or that were submitted in any other manner in violation of R 432.532a to R 432.532g. The corresponding entry fees must be seized by the fantasy contest operator or licensed management company. (iii) Seize from the person any prizes or awards obtained from entering or participating in fantasy contests the person is prohibited from entering or participating in or that were obtained from entering or participating in fantasy contests in any other manner in violation of R 432.532a to R 432.532g. (b) If a fantasy contest operator or licensed management company detects or is notified that a prohibited person established or used a fantasy contest player account or entered or participated in a fantasy contest in violation of these rules, the fantasy contest operator or licensed management company must do all of the following: (i) Suspend and immediately prohibit access to the fantasy contest player account established by the prohibited person or used by the prohibited person to submit any fantasy contest entry or entries or participate in any fantasy contest. Any funds remaining in the fantasy contest player account must be seized by the fantasy contest operator or licensed management company. (ii) Cancel any fantasy contest entries that were submitted by the prohibited person and are pending at the time the fantasy contest operator or licensed management company detects or is notified that the person is a prohibited person. The corresponding entry fees must be seized by the fantasy contest operator or licensed management company. (iii) Seize from the prohibited person any prizes or awards obtained from entering or participating in fantasy contests in violation of these rules. (iv) Maintain records related to the incident and all action taken under this subdivision. The fantasy contest operator or licensed management company must provide a written notice to the board, by the fifteenth day of each month, summarizing all incidents and action taken under this subdivision during the previous month. (c) The action may include any other action considered appropriate by the fantasy contest operator or licensed management company or directed by the board, which may include, but is not limited to, temporarily or permanently restricting the person’s ability to enter or participate in fantasy contests offered by the fantasy contest operator or licensed management company. (4) The procedures and internal controls of a fantasy contest operator or licensed management company must contain procedures for both of the following: (a) The maintenance of sufficient information about any fantasy contest player’s or other person’s activity, such that if a fantasy contest player or other person is discovered to be using a fantasy contest player account or entering or participating in fantasy contests in a fraudulent manner or in any other manner in violation of these rules, the fantasy contest operator or licensed management company and the board have all necessary information to take appropriate action. (b) The processing of any prizes, awards, entry fees, and other amounts seized from a person under this rule. (5) For purposes of this rule, a fantasy contest entry is considered pending if the outcome of the fantasy contest in which the fantasy contest entry was entered has not yet been determined.