This past legislative session, the State of Missouri legalized daily fantasy sports (DFS). Earlier this month, the Missouri Gaming Commission (“Commission”) proposed new rules for how DFS will be regulated in the State.
The first proposed rule, 11 CSR 45-40.040, details the disclosure requirements and other responsibilities that would be imposed on parties that have applied for or have been issued Fantasy Sports Contest Operator licenses by the Commission. The second proposed rule, 11 CSR 45-40.050, would impose operational requirements on DFS operators. These would specify the information required to be kept on file with the Commission, the actions operators must take if they discover a registered account held by a minor, and certain marketing restrictions for DFS operators. The third proposed rule, 11 CSR 45-40.060, would require DFS operators to hold in cash reserves an amount equal to or greater than all authorized player funds held in player accounts of Missouri residents for use in fantasy sports contests. The final proposed rule, 11 CSR 45-40.070 details the operational fees that would be imposed on DFS operators, due April 15 of each year, in the amount of 11.5% of the licensed operator’s net revenue from the previous calendar year.
The rules are open for public comment and will be addressed by the Commission at a public hearing on November 2, 2016 at 10:00 a.m. in Jefferson City, Missouri.