Arizona Laws 5-1203. Prohibited employees; procedures and controls
A. The fantasy sports contest operator may not employ an individual and, if already employed, shall terminate an employee who is identified through regulations issued by the department if the individual meets any of the following criteria:
Terms Used In Arizona Laws 5-1203
- Application: means a request to issue a license as a fantasy sports contest operator or to approve any act related to fantasy sports contests. See Arizona Laws 5-1201
- Department: means the department of gaming. See Arizona Laws 5-1201
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Fantasy sports contest: means a simulated game or contest that is offered to the public with an entry fee and that meets all of the following conditions:
(a) No fantasy sports contest team is composed of the entire roster of a real-world sports team. See Arizona Laws 5-1201
- Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Highly experienced player: means a fantasy sports contest player who has done at least one of the following:
(a) Entered more than one thousand fantasy sports contests offered by a single fantasy sports contest operator. See Arizona Laws 5-1201
- operator: means a person that is engaged in the business of professionally conducting paid fantasy sports contests for cash or other prizes or awards for members of the general public that requires cash or cash equivalent as an entry fee to be paid by a member of the general public who participates in a paid fantasy sports contest. See Arizona Laws 5-1201
- player: means an individual who participates in a fantasy sports contest offered by a fantasy sports contest operator. See Arizona Laws 5-1201
- Protected information: means information related to playing fantasy sports contests by a fantasy sports contest player that is not readily available to the general public and that is obtained as a result of a person's employment in relation to a fantasy sports contest. See Arizona Laws 5-1201
- Wilfully: means , with respect to conduct or to a circumstance described by a statute defining an offense, that a person is aware or believes that the person's conduct is of that nature or that the circumstance exists. See Arizona Laws 1-215
1. Has been convicted of any gaming offense.
2. Has been convicted of a felony in the seven years before submission of the employment application unless that felony has been set aside.
3. Has ever been convicted of a felony related to extortion, burglary, larceny, bribery, embezzlement, robbery, racketeering, money laundering, forgery, fraud, murder, voluntary manslaughter or a sexual offense that requires the individual to register pursuant to section 13-3821.
4. Has knowingly and wilfully provided materially important false statements or information or omitted materially important information on the individual’s employment application or background questionnaire.
5. Is an individual whose prior activities, criminal record, if any, or reputation, habits and associations pose a threat to the public interest or to the effective regulation and control of gaming or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in conducting gaming or carrying on the business and financial arrangements incidental to gaming.
B. As a condition of licensure, a fantasy sports contest operator must submit to and receive approval from the department for commercially reasonable procedures and internal controls intended to do all of the following:
1. Prevent the fantasy sports contest operator or its owners, directors, officers and employees and any relative of any of these individuals living in the same household from participating in a fantasy sports contest offered to the public.
2. Prevent the employees or agents of the fantasy sports contest operator from sharing protected information with third parties unless the protected information is otherwise made publicly available.
3. Prevent participants and officials in an athletic event from participating in a fantasy sports contest that is based on the athletic event.
4. Establish the number of entries a single fantasy sports contest player may enter in a single fantasy sports contest and take reasonable steps to prevent fantasy sports contest players from submitting more than the allowable number of entries.
5. Identify each highly experienced player by a symbol attached to the highly experienced player’s username.
6. Offer some fantasy sports contests that are open only to players other than highly experienced players.
7. Either of the following:
(a) Segregate the deposits in the fantasy sports contest players’ accounts from operational money.
(b) Maintain a reserve in the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond or a combination of these, the aggregate amount of which exceeds the total dollar value amount of deposits in the fantasy sports contest players’ accounts. The reserve may not be used for operational activities.
8. Ensure compliance with the applicable state and federal requirements to protect the privacy and online security of a fantasy sports contest player and the fantasy sports contest player’s account.
9. Otherwise ensure the integrity of fantasy sports contests.
C. A licensed fantasy sports contest operator shall comply with the procedures and internal controls that are submitted to and approved by the department under subsection B of this section. A licensed fantasy sports contest operator may make technical adjustments to its procedures and internal controls if the adjustments are not material and it notifies the department within twenty-one days of the changes becoming effective and continues to meet or exceed the standards required by this chapter and any rules adopted by the department.
D. Procedures submitted to the department under subsection B of this section are confidential and privileged and are not subject to disclosure under Title 39, Chapter 1, Article 2.