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
4 - REQUIREMENTS OF FANTASY CONTEST PROVIDERS

Universal Citation: 1 CO Code Regs 207-3 ยง 4

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

BASIS AND PURPOSE FOR RULE 4

The purpose of Rule 4 is to establish the requirements for patron accounts and to direct fantasy contest providers to establish internal control procedures. The statutory basis for Rule 4 is found in sections 44-30-203, C.R.S., 44-30-204, C.R.S., 44-30-1604, C.R.S., 44-30-1606, C.R.S., 44-30-1607, C.R.S., and 44-30-1610, C.R.S., and Part 16 of Article 30 of Title 44.

4.1 Patron accounts.

(1) Account required.
(a) A fantasy contest provider shall use technologically reasonable measures to limit each patron to one (1) active account.

(b) A fantasy contest provider shall implement rules and publish procedures to terminate all accounts of any patron that knowingly and intentionally establishes or seeks to establish multiple active accounts, in contravention of this Rule, whether directly or by use of another person as a proxy.

(2) Account requirements.

Before a patron is allowed to enter a fantasy contest, a fantasy contest provider shall:

(a) Create an electronic patron file, which shall include at a minimum:
(i) The patron's legal name;

(ii) The patron's date of birth;

(iii) The patron's fantasy account number or username;

(iv) The patron's residential address; a post office box is not acceptable;

(v) The patron's electronic mail address;

(vi) The patron's telephone number;

(vii) Any other information collected from the patron used to verify his or her identity;

(viii) The method used to verify the patron's identity; and

(ix) The date of verification.

(b) Encrypt all of the following information contained in an electronic patron file:
(i) Any portion of the patron's Social Security number or equivalent identification number for a noncitizen patron, such as a passport or taxpayer identification number;

(ii) The patron's passwords and PINs; and

(iii) The patron's personal financial information.

(c) Record the patron's acceptance of the fantasy contest provider's terms and conditions.

(d) A fantasy contest provider must collect the patron's telephone number, as required under Rule 4.1(2)(a)(vi), from all patrons opening new accounts as of January 30, 2024. A fantasy contest provider must collect the patron's telephone number, as required under Rule 4.1(2)(a)(vi), from all patrons with active accounts by July 1, 2024. Fantasy contest providers are not required to collect patrons' telephone numbers, as required under Rule 4.1(2)(a)(vi), from all patrons with inactive or dormant accounts.

(3) Age and identity verification.

A full identity check and verification must be completed before a patron is allowed to enter a fantasy contest:

(a) Only patrons eighteen (18) years of age and older may deposit funds or participate in a fantasy contest.

(b) Patron verification must use commercially reasonable standards to confirm that the patron is not a prohibited participant.

(c) Third-party service providers may be used for age and identity verification of patrons.

(4) Transfer of funds prohibited.

A fantasy contest provider shall not permit a patron to transfer funds from their patron account to another patron's account.

(5) Account closure.

A fantasy contest provider shall provide a conspicuous and readily accessible method for a patron to close their account. Any balance remaining in a patron's account closed by a patron shall be refunded pursuant to the provider's internal controls.

(6) Patron account withdrawal.
(a) A patron must be allowed to withdraw funds maintained in his or her account, whether such account is open or closed.

(b) A fantasy contest provider must honor such patron request to withdraw funds within five (5) business days of the request, unless the conditions set forth in subsection (d) are met.

(c) A fantasy contest provider should use commercially reasonable standards to verify that the funds withdrawn pursuant to a patron request are transferred to an account in the name of the patron or mailed by check to the patron's address.

(d) A fantasy contest provider may decline to honor a patron request to withdraw funds if the provider believes in good faith that the patron engaged in either fraudulent conduct or other conduct that would put the operator in violation of the law. In such cases, the fantasy contest provider shall:
(i) Provide notice to the patron of the nature of the investigation of the account; and

(ii) Conduct its investigation in a reasonable and expedient fashion, providing the patron additional written notice of the status of the investigation every tenth business day starting from the day the original notice was provided to the patron.

(e) For purposes of this provision, a request for withdrawal will be considered honored if it is processed by the fantasy contest provider notwithstanding a delay by a payment processor, credit card issuer, or the custodian of a financial account.

(7) Dormant patron accounts.

A fantasy contest provider shall consider a patron account to be dormant if the patron has not logged into the account for at least three (3) years calculated from the patron's last log-in date. A dormant account shall be closed by the fantasy contest provider.

(8) Unclaimed funds in a dormant patron account.
(i) Subject to the provisions of section 38-13-201, C.R.S., funds of patrons that remain in a dormant patron account shall be presumed abandoned.

(ii) The fantasy contest provider shall report and deliver all funds of patrons that are presumed abandoned to the office of the Colorado Department of the Treasury as provided in section 38-13-201, C.R.S.

(iii) At least sixty (60) days prior to reporting any funds of the patron to the Colorado Department of the Treasury, the fantasy contest provider shall provide notice to the patron's last known physical or email address and conduct due diligence to locate the patron.

4.2 Internal controls.

(1) Fantasy contest providers shall establish and adhere to internal controls that, at minimum, address compliance with the following:
(a) Monitoring, investigating, resolving, documenting, and reporting security incidents associated with information technology systems;

(b) Testing to ensure that the fantasy contest provider's platform meets or exceeds current industry standards;

(c) Protecting the privacy and online security of patrons and their accounts, including procedures preventing unauthorized withdrawals from patron accounts;

(d) Geolocation services to verify a patron's physical location;

(e) Suspending or banning the account of patrons who violate a fantasy contest provider's internal procedures, the rules or terms of a fantasy contest, or fantasy contest law;

(f) Providing fantasy contest patrons with access to information on responsible gaming;

(g) Mitigating the risk of fraud, cheating, and/or money laundering;

(h) Verifying the true identity of patrons;

(i) Handling patron complaints;

(j) Creating, updating, adjusting, and closing patron accounts;

(k) Closing out dormant patron accounts; and

(l) Procedures to address the consumer protections listed in section 44-30-1607(1), C.R.S., including:
(i) Preventing prohibited participants from competing in fantasy contests offered by the provider;

(ii) Preventing the sharing of confidential information that could affect a fantasy contest until the information is made public;

(iii) Verifying patrons are eighteen (18) years of age or older;

(iv) Allowing patrons to a voluntarily restrict themselves from entering fantasy contests program and preventing those individuals from entering fantasy contests;

(v) Clearly disclosing the maximum number of entries that a fantasy contest patron may submit to each fantasy contest and prevent patrons from exceeding that number;

(vi) Segregating fantasy contest patron funds from operation funds and maintaining a reserve for the benefit and protection of the funds;

(vii) Distinguishing highly experienced players from beginner players and ensuring that highly experienced players are clearly identified to all patrons;

(viii) Identifying authorized scripts that are made readily available to all fantasy contest players and detecting and preventing unauthorized scripts;

(ix) Clearly disclosing all rules governing the fantasy contests;

(x) Clearly disclosing the material terms of each promotional offer at the time the offer is advertised; and

(xi) Limiting each fantasy contest patron to one account.

(2) Fantasy contest providers shall submit a copy of their internal controls to the Division upon request.

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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