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Can I obtain a fantasy sports license in Arizona? What are the requirements?

To obtain a fantasy sports license in Arizona, you must be licensed by the Department of Gaming as a fantasy sports contest operator [1.1]. An individual may offer one or more fantasy sports contests if all of the following apply: (1) the fantasy sports contests are not made available to the general public, (2) each of the fantasy sports contests is limited to not more than fifteen total fantasy sports contest players, and (3) the individual collects not more than $10,000 in total entry fees for all fantasy sports contests offered in a calendar year, at least ninety-five percent of which are awarded to the fantasy sports contest players [1.1].

To apply for licensure, every applicant must submit a completed application, along with any required information, to the department. The information required by the department shall include documentation of the name of the applicant, the location of the applicant’s principal place of business, the applicant’s telephone number, the applicant’s social security number or, if applicable, the applicant’s federal tax identification number, the name and address of each individual that holds a ten percent or more ownership interest in the applicant or in shares of the applicant, the applicant’s criminal record, if any, or if the applicant is a business entity, on request, any criminal record of an individual who is a director, officer or key employee of, or any individual who has a ten percent or more ownership interest in, the applicant, any ownership interest that a director, officer, key employee or individual owner of ten percent or more of the applicant holds in a person that is or was a fantasy sports contest operator or similar entity in any jurisdiction, an identification of any business, including, if applicable, the state of incorporation or registration, in which an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant, has an equity interest of five percent or more, whether an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant has ever applied for or been granted any license, registration or certificate issued by a licensing authority in this state or any other jurisdiction for a gaming activity, whether an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant has filed or been served with a complaint or other notice filed by a public body regarding the delinquency in payment of or dispute over filings concerning the payment of any tax required under federal, state or local law, including the amount of tax, the type of tax, the taxing agency and the time periods involved, a description of any physical facility operated by the applicant in this state, the employees who work at the facility and the nature of the business conducted at the facility, and information sufficient to show, as determined by the department, that the applicant can meet the requirements of procedures submitted by the applicant under section 5-1203 and under any rules adopted under this chapter [1.1].

After a fantasy sports contest operator is licensed, the fantasy sports contest operator shall report any change to the information regarding ownership included in its application with the department within thirty days after the change is effective [1.2]. A licensed fantasy sports contest operator shall retain and maintain in a place secure from theft, loss or destruction all of the records required to be maintained under this chapter and the rules adopted under this chapter for at least three years after the date the record is created [1.2]. The fantasy sports contest platform shall be designed to ensure the integrity and confidentiality of all player communications, security and confidentiality of player data including personal and financial information, and the proper identification of the sender and receiver of all communications [2.2]. The responsible party shall submit a catalogue of the events and fantasy sports contests it intends to offer. The catalogue and any changes shall be submitted to the Department prior to implementation [2.3]. The department shall adopt rules to implement this chapter as provided in title 41, chapter 6, including rules that do all of the following: require a fantasy sports contest operator to implement commercially reasonable procedures to prohibit access to individuals who request to restrict themselves from playing fantasy sports contests and individuals who are under twenty-one years of age, prescribe requirements related to beginning players and highly experienced players, suspend the account of a fantasy sports contest player who violates this chapter or a rule adopted under this chapter, provide a fantasy sports contest player with access to information on playing responsibly and how to ask for assistance for compulsive play behavior, require an applicant for a fantasy sports contest operator license to designate at least one key employee as a condition of obtaining a license, and include any other rule the department determines is necessary to ensure the integrity of fantasy sports contests [1.3].

In summary, to obtain a fantasy sports license in Arizona, you must be licensed by the Department of Gaming as a fantasy sports contest operator, and you must comply with the requirements and conditions set forth in the law and rules.

Source(s):
Jurisdiction

Arizona