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Can I offer contests that involve text message promotions in Arizona? What are the requirements?

Based on the provided documents, it appears that offering text message promotions in Arizona is allowed as long as the responsible party is licensed and complies with the rules and regulations set forth by the Arizona Administrative Code (AZAC) Title 19, Chapter 4, Article 2, Section 2, R19-4-202, and AZAC Title 19, Chapter 4, Article 1, Section 36, R19-4-136. The responsible party must also comply with the communication requirements set forth by R19-4-212.

Licensing Requirements

According to AZRS 5-1202, a person may not offer fantasy sports contests in Arizona unless the person is licensed by the department as a fantasy sports contest operator. The department has jurisdiction over each person involved in conducting a fantasy sports contest, and the department may adopt rules related to conducting fantasy sports contests, including rules prescribing penalties for violating this chapter or any rules adopted under this chapter.

Requirements for Promotions and Bonuses

Responsible parties may offer promotions and/or bonuses, but they must submit a written notification to the Department for a promotion and/or bonus prior to implementation [2.1][1.3]. The promotion and/or bonus rules shall be clear and unambiguous, and include the date and time the promotion or bonus is active and expires, rules of play, nature and value of prizes or awards, eligibility restrictions or limitations, wagering and redemption requirements, including any limitations, eligible events or wagers, cancellation requirements, and terms and conditions that are full, accurate, concise, transparent, and do not contain misleading information [2.1][1.3]. Promotions and/or bonuses described as free shall clearly disclose material facts, terms, and conditions [2.1][1.3]. Promotions and/or bonuses shall not restrict the patron from withdrawing their own funds, or withdrawing winnings from wagers placed using their own funds [2.1][1.3].

Communication Requirements

If the fantasy sports contest platform is unable to accept a fantasy sports contest entry or validate a winning entry for more than two hours, the responsible party shall notify the Department as soon as practically possible [1.5].

Events and Fantasy Sports Contests

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 [1.2]. The Department shall publish a list of authorized events and fantasy sports contests on its website [1.2]. The Department may prohibit a particular event or fantasy sports contest if it does not comply with A.R.S. § 5-1201(6) [1.2].

Disputes Concerning a Promotion Game, or a Promotion Winner

All disputes concerning a Promotion Game or a Promotion Prize are subject to the requirements of R19-3-410 [3.1].

Conclusion

Based on the provided documents, it appears that offering text message promotions in Arizona is allowed as long as the responsible party is licensed and complies with the rules and regulations set forth by the Arizona Administrative Code (AZAC) Title 19, Chapter 4, Article 2, Section 2, R19-4-202, and AZAC Title 19, Chapter 4, Article 1, Section 36, R19-4-136. The responsible party must also comply with the communication requirements set forth by R19-4-212. 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. The Department may prohibit a particular event or fantasy sports contest if it does not comply with A.R.S. § 5-1201(6). All disputes concerning a Promotion Game or a Promotion Prize are subject to the requirements of R19-3-410.

Source(s):
Jurisdiction

Arizona