Code of Colorado Regulations
200 - Department of Revenue
207 - Division of Gaming - Rules promulgated by Gaming Commission
1 CCR 207-3 - RULES OF FANTASY CONTEST OPERATOR LICENSING AND REGISTRATION
2 - APPLICATIONS AND LICENSURE

Universal Citation: 1 CO Code Regs 207-3 ยง 2

Current through Register Vol. 47, No. 5, March 10, 2024

BASIS AND PURPOSE FOR RULE 2

The purpose of Rule 2 is to enable applications and licensure as related to fantasy contest providers, including to establish and provide the specific information required on license applications, renewals, and license fees for each type of license. The statutory basis for Rule 2 is found in sections 24-4-105(11), C.R.S., 44-30-203(2)(a.5), C.R.S., 44-30-1605, C.R.S., 44-30-1606, 44-30-1607, C.R.S., and Part 16 of Article 30 of Title 44.

2.1 Categories.

(1) The Division has two categories of fantasy contest operators based on the number of active patrons.
(a) Small fantasy contest operators.
(i) Small fantasy contest operators have 7,500 or fewer active patron accounts over the preceding 365 days.

(ii) Small fantasy contest operators are required to apply for registration with the Division.

(b) Fantasy contest operators.
(i) Fantasy contest operators have more than 7,500 active patron accounts over the preceding 365 days.

(ii) Fantasy contest operators are required to apply for licensure with the Division.

(2) Small fantasy contest operator registrations and fantasy contest operator licenses will expire on July 31 and not exceed a two-year period.

(3) The fee for registration and licensure shall be the following:
(a) Small fantasy contest operator registration:
(i) Initial application fee $350.

(ii) Renewal fee $350.

(b) Fantasy contest operator license:
(i) Initial application fee $15,000.

(ii) Renewal fee $15,000.

2.2 Application for registration.

(1) Registrant Name
(a) Registrants shall not operate as a small fantasy contest operator using a name that has not been provided to the Director.

(b) If a registrant operates as a small fantasy contest operator under a trade name, such trade name must be filed with the Colorado Secretary of State pursuant to section 7-71-101, C.R.S.

(c) All names under which a registrant operates as a small fantasy contest operator (including business, assumed, or trade names) shall be provided to the Director.

(2) A small fantasy contest operator must apply for registration with the Division. An applicant for registration must:
(a) Submit a completed application for registration on a form and in a manner approved by the Division.

(b) Submit with the application all fees established by the Director.

(c) Submit documentation validating the number of fantasy contest players in Colorado with active patron accounts. The number of said patrons shall not exceed 7,500, pursuant to section 44-30-1603(7), C.R.S. The documentation shall comprise customer base data from the 365 days preceding the date of application submission.

(d) Submit detailed information about the nature and type of fantasy contests to be offered by the applicant and the utilization of statistics with examples of all information and materials to be provided to contestants.

(e) Submit additional information as may be requested by the Division to evaluate the applicant's qualification for registration. An application submitted without the required fees and documentation will be considered incomplete.

(3) If a registered small fantasy contest operator at any time exceeds 7,500 active patron accounts, the fantasy contest operator must apply for licensure. The applicant must notify the Division within twenty (20) days of exceeding 7,500 active patron accounts, and shall have forty five (45) days from notifying the Division to submit an application for licensure. If, after licensure, the fantasy contest operator drops below 7,500 active patron accounts, the applicant may submit an application for registration at the time of renewal instead of renewing licensure.

2.3 Application for licensure.

(1) Licensee Name
(a) Licensees shall not operate as a fantasy contest operator using a name that has not been provided to the Director.

(b) If a licensee operates as a fantasy contest operator under a trade name, such trade name must be filed with the Colorado Secretary of State pursuant to section 7-71-101, C.R.S.

(c) All names under which a licensee operates as a fantasy contest operator (including business, assumed, or trade names) shall be provided to the Director.

(2) A fantasy contest operator that has more than 7,500 active patron accounts in Colorado, must apply for licensure with the Division. An applicant for licensure must:
(a) Submit a completed application for licensure on a form and in a manner approved by the Director;

(b) Submit with the application all fees established by the Director;

(c) Attest to the validity of the information listed on the application;

(d) Submit a written oath or affirmation on the form and in the manner prescribed by the Director;

(e) Submit the information required by section 44-30-1606(2)(c), C.R.S.

(f) Submit detailed information about the nature and type of fantasy contests to be conducted by the applicant and the utilization of statistics with examples of all information and materials to be provided to contestants.

(g) Submit additional information as may be requested by the Director to evaluate the applicant's qualification for licensure. An application submitted without the required fees and documentation will be considered incomplete.

(3) If a fantasy contest operator drops below 7,500 active patron accounts in Colorado, the applicant may submit an application for registration as a small fantasy contest operator instead of renewing licensure.

2.4 Renewal and reinstatement of registration or licensure.

(1) Fantasy contest providers must submit renewal applications for registration or licensure renewal to the Division at least forty-five (45) days prior to the respective registration or license expiration date.

(2) An applicant for registration and license renewal must:
(a) Submit a completed, signed application for registration or licensure renewal on a form and in a manner approved by the Division;

(b) Submit the results of the annual independent audit and/or internal controls review, conducted pursuant to section 44-30-1607(2), C.R.S.;
(i) The audit may be an annual financial audit of the operator's previous fiscal year-end financial statements by an independent certified public accountant; or

(ii) The audit may be an annual compliance attestation completed by an independent certified public accountant or other professional service provider authorized by the Director to verify compliance with the part 16, article 30, title 44, C.R.S., and the Rules and Regulations promulgated thereunder.

(c) Submit the aggregate amount of money paid by Colorado patrons in entry fees to fantasy contests over the previous calendar year; and,

(d) Submit all fees established by the Director.

(3) If an applicant fails to submit their completed renewal application when due, the applicant shall not be considered to have made a timely and sufficient application for renewal, as such term is used in section 24-4-104(7), C.R.S., and the license or registration shall expire.
(a) The applicant shall cease operations until their registration or license has been reinstated.

(b) The applicant may be subject to administrative action.

(4) In order to reinstate an expired registration or license, an applicant must:
(a) Submit a completed application for reinstatement on a form and in a manner approved by the Director;

(b) Submit an independent audit to ensure compliance with part 16 as required by 44-30-1607(2), C.R.S.;

(c) Submit all fees established by the Director; and

(d) Adhere to any administrative action imposed by the Director.

(5) If a fantasy contest provider chooses not to renew their license or registration, the fantasy contest provider will not be allowed to reapply for a license or registration for a period of one year unless in addition to a new application, the requirements set forth in (2)(b) and (2)(c) of this regulation 2.4 are met.

2.5 Untrue statements.

(1) An applicant for fantasy contest operator license or small fantasy contest registration shall not make any false statements or fail to disclose any facts requested in connection with an application or any communication with the Division.

(2) The Director may refuse to grant a license or registration to an applicant who makes deliberate misstatements, deliberate omissions, misrepresentations, or untruths in any application or in connection with the applicant's background investigation.

2.6 Approval with conditions or for a limited period.

The Director may grant a registration or license with special conditions or for a limited period, or both.

2.7 Requirements for non-renewal years.

Per Rule 2.1(2), fantasy contest operator licenses and registrations are valid for up to two years. In the off year in which a renewal application is not required, fantasy contest providers must submit the results of their annual independent audits and/or internal control reviews, conducted pursuant to section 44-30-1607(2), C.R.S., by July 31.

(1) The audit may be an annual financial audit of the provider's fiscal year-end financial statements by an independent certified public accountant; or

(2) The audit may be an annual compliance attestation along with the results completed by an independent certified public accountant to verify compliance with the part 16, article 30, title 44, C.R.S., and the Rules and Regulations promulgated thereunder.

2.8 Petitions for declaratory order.

(1) Any person may petition the Director for a declaratory order to terminate controversies or to remove uncertainties as to the applicability to the petitioner of any provision of Article 30 of Title 44, C.R.S., or of any rule or order of the Director.

(2) The Director will determine, in his or her discretion and without notice to petitioner, whether to rule upon any such a petition. The Director shall promptly notify the petitioner of his or her action and state the reasons for such action.

(3) In determining whether to rule upon a petition filed pursuant to this Rule, the Director will consider the following matters, among others:
(a) Whether a ruling on the petition will terminate a controversy or remove uncertainties.

(b) Whether the petition involves any subject, question or issue which is the subject of a formal or informal matter or investigation currently pending before the Director or a court involving one or more of the petitioners.

(c) Whether the petition involves any subject, question or issue which is the subject of a formal or informal matter or investigation currently pending before the Director or a court but not involving any petitioner.

(d) Whether the petition seeks a ruling on a moot or hypothetical question or will result in an advisory ruling or opinion.

(e) Whether the petitioner has some other adequate legal remedy, other than an action for declaratory relief pursuant to Rule 57, Colorado Rules of Civil Procedure, which will terminate the controversy or remove any uncertainty as to the applicability to the petitioner of the statute, rule, or order in question.

(4) Any petition filed pursuant to this Rule shall set forth the following:
(a) The name and address of the petitioner and whether the petitioner is registered or licensed pursuant to sections 44-30-1605 or 44-30-1606, C.R.S.

(b) The statute, rule, or order to which the petition relates.

(c) A concise statement of all of the facts necessary to show the nature of the controversy or uncertainty and the manner in which the statute, rule or order in question applies or potentially applies to the petitioner.

(5) If the Director determines that he or she will rule on the petition, the following procedure shall apply:
(a) The Director may rule upon the petition based solely upon the facts presented in the petition. In such a case:
(i) Any ruling of the Director will apply only to the extent of the facts presented in the petition and any amendment to the petition.

(ii) The Director may order the petitioner to file a written brief, memorandum, or statement of position.

(iii) The Director may set the petition, upon due notice to petitioner, for a non-evidentiary hearing.

(iv) The Director may dispose of the petition on the sole basis of the matters set forth in the petition.

(v) The Director may request the petitioner to submit additional facts in writing. In such event, such additional facts will be considered as an amendment to the petition.

(vi) The Director may take administrative notice of facts pursuant to the State Administrative Procedure Act and may utilize available experience, technical competence and specialized knowledge in the disposition of the petition.

(vii) If the Director rules upon the petition without a hearing, the Director shall promptly notify the petitioner of the decision.

(b) The Director may, in his or her sole discretion, set the petition for hearing, upon due notice to petitioner, for the purpose of obtaining additional facts or information or to determine the truth of any facts set forth in the petition or to hear oral argument on the petition. The notice to the petitioner setting such hearing shall set forth, to the extent known, the factual or other matters into which the Director intends to inquire. For the purpose of such a hearing, to the extent necessary, the petitioner shall have the burden of proving all of the facts stated in the petition, all of the facts necessary to show the nature of the controversy or uncertainty and the manner in which the statute, rule or order in question applies or potentially applies to the petitioner and any other facts the petitioner desires the Director to consider.

(6) The parties to any proceeding pursuant to this Rule shall be the Director and the petitioner. Any other person may seek leave of the Director to intervene in such a proceeding and leave to intervene will be granted at the sole discretion of the Director. A petition to intervene shall set forth the same matters as required by Rule 2.8(3)(D). Any reference to a "petitioner" in this Rule also refers to any person who has been granted leave to intervene by the Director.

(7) Any declaratory order or other order disposing of a petition pursuant to this Rule shall constitute final agency action subject to judicial review pursuant to section 24-4-106, C.R.S.

Disclaimer: These regulations may not be the most recent version. Colorado may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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