HB742: AN ACT relating to fantasy contests.

Legislative Summary

Create new sections of KRS Chapter 230 to authorize the corporation to regulate the conduct of fantasy contest operators; require the use of geolocation technology; require fantasy contest operators to implement procedures to prevent fraud, abuse, and money laundering; require notification to the corporation for a confirmed breach of a sport's governing body's internal rules and codes of conduct, conduct that corrupts any outcome, and confirmed illegal activities; establish licensing requirements for a fantasy contest operator; allow the corporation to promulgate administrative regulations to establish additional qualifications and requirements for licensing to preserve the integrity and security of fantasy contests; prohibit a license from being issued to a person that has been convicted of a felony, crime involving illegal gaming or gambling, or any crime involving theft or fraud; require a fantasy contest operator to conduct an independent audit; require a fantasy contest operator to be at least 18 years old; require the corporation to investigate all reasonable allegations of prohibited conduct; require each fantasy contest operator to include a statement regarding obtaining assistance with real-money gaming problems on the operator's website or mobile application; prohibit a fantasy contest operator from paying any price or award to a person who is on the self-exclusion list; create a new section of KRS Chapter 230 to establish the fantasy contest administration fund from fantasy contest taxes and fees; create a new section of KRS Chapter 138 to define "adjusted gross fantasy contest receipts" and impose a tax on fantasy contests; amend KRS 243.500, 525.090, 528.010, 528.070 to exempt fantasy contests; amend KRS 68.182, 91.202, 92.282, 230.215, 230.225, 230.232, 230.260 to conform; provide that the Act may be cited as the Fantasy Sports Consumer Protection Act; EFFECTIVE July 1, 2025.