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

To offer contests that involve entry fees in Pennsylvania, you need to obtain a fantasy contest license [1.2][1.4][1.8]. A fantasy contest licensee may offer a fantasy contest only under certain conditions [1.1][1.3]. The value of all prizes or awards offered to winning participants must be established and made known in advance of the fantasy contest. The value of the prize or award is not determined by the number of participants or the amount of fees paid by the participants. The winning outcome reflects the relative knowledge and skill of the participant. The winning outcome is not based on the score, point spread or performance of a single actual team or combination of teams, or solely on a single performance of an individual athlete or player in a single actual event. The winning outcome is based on statistical results accumulated from fully completed athletic sports contests or events, except that participants may be credited for statistical results accumulated in a suspended or shortened sports event which has been partially completed on account of weather or other natural or unforeseen event [1.1][1.3].

Additionally, a licensed operator shall not permit an individual under 18 years of age in Pennsylvania to participate in a fantasy contest. A licensed operator shall not permit an individual under 21 years of age to participate in a fantasy contest which is conducted within a licensed facility. A licensed operator shall not offer a fantasy contest based in whole or in part on collegiate or high school events or players [1.5][1.7].

To establish a fantasy contest account, the licensed operator shall verify the age, location, and identity of participants in a fantasy contest prior to accepting an entry in a fantasy contest by the participant account holder. The licensed operator shall assure the participant has funds on account sufficient to pay the fantasy contest entry fee at the time of entry. The licensed operator shall require that each time a participant enters his registered fantasy account, he shall enter his unique username and password to verify his identity. The licensed operator shall provide the account holder the option to restrict the participant from entering a fantasy contest or accessing a fantasy contest account for a specific period of time as determined by the account holder. The licensed operator shall prevent unauthorized withdrawals from a fantasy contest account. The licensed operator shall establish protocols for participants to withdraw funds whether the account is open or closed. The licensed operator shall establish procedures for closing accounts and paying balances. The licensed operator shall establish procedures for the disbursement of unclaimed prizes [1.6][1.9].

In summary, to offer contests that involve entry fees in Pennsylvania, you need to obtain a fantasy contest license and comply with the conditions and restrictions set forth in the relevant regulations.

Source(s):
Jurisdiction

Pennsylvania