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Can I offer contests that involve entry fees in Maine? What are the requirements?

To offer contests that involve entry fees in Maine, you must obtain a license to act as a fantasy contest operator and comply with the requirements set forth in 8 M.R.S. §§ 1103-1105 and 16-633 MECM Ch. 35.

License Application

To apply for a license, you must provide the following information [1.2]:

  • The name, primary business location, and contact information of the applicant.
  • Disclosure of ownership interests in the applicant.
  • Consent to permit the director to conduct a criminal background check.
  • Gross fantasy contest revenues in the State, and any other jurisdiction as determined by the director, for the period of 12 months preceding the application.
  • The type and estimated number of fantasy contests to be conducted during the term of the license and during any period of operation authorized under subsection 9.
  • The methods by which the fantasy contest operator will determine and verify the geographic location of a fantasy contestant using the operator’s platform.
  • The methods by which the fantasy contest operator will protect a fantasy contestant’s personal and private information.
  • Any additional information required by the director or as determined by rule to ensure that the applicant meets licensing criteria.

Internal controls must be approved by the director prior to licensure [2.1].

Operation of Fantasy Contests

Once licensed, you must comply with the following requirements for the operation of fantasy contests [1.1]:

  • Disclose the number of entries that a fantasy contestant may submit to each fantasy contest and provide reasonable steps to prevent fantasy contestants from submitting more than the allowable number.
  • Prohibit fantasy contestants from submitting more than one entry in any fantasy contest involving 12 entries or fewer.
  • Prohibit fantasy contestants from submitting more than 2 entries in any fantasy contest involving more than 12 entries but fewer than 36 entries.
  • Prohibit fantasy contestants from submitting more than 3 entries in any fantasy contest involving 36 or more entries but fewer than 101 entries.
  • Prohibit, unless otherwise provided by this chapter, fantasy contestants from submitting more than 3% of all entries in any fantasy contest involving more than 100 entries.
  • Permit unlimited entries in no more than 3% of all fantasy contests; the entry fee for such contests must be a minimum of $150.
  • Inform fantasy contestants of state and federal tax obligations on certain winnings.

Allocation of Funds

Additionally, the director shall collect for deposit to the General Fund 10% of gross fantasy contest revenues, including any revenues earned while operating pending approval of an application submitted to the director as described in section 1103, subsection 9, from a fantasy contest operator licensed under this chapter that has gross fantasy contest revenues of $100,000 or greater [1.1].

Therefore, to offer contests that involve entry fees in Maine, you must obtain a license to act as a fantasy contest operator and comply with the requirements set forth in 8 M.R.S. §§ 1103-1105 and 16-633 MECM Ch. 35. Additionally, you must comply with the requirements for the operation of fantasy contests set forth in 8 M.R.S. § 1105 and allocate 10% of gross fantasy contest revenues to the General Fund [1.1][1.2][2.1].

Source(s):
Jurisdiction

Maine