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Can you summarize MICL, Act 157 of 2019?
GAMING > FANTASY CONTESTS CONSUMER PROTECTION ACT (432.501 - 432.516)
Short Summary
The Fantasy Contests Consumer Protection Act in Michigan prohibits the offering of fantasy contests in the state without a license from the board. It is also a violation to knowingly make a false statement on a license application or provide false testimony to the board. The board is not allowed to issue a license to a person who violates these provisions. Violating the prohibition on offering fantasy contests without a license is a crime. For the first or second violation, it is a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $10,000.00, or both. For a third or subsequent violation, it is a felony punishable by imprisonment for not more than 5 years or a fine of not more than $50,000.00, or both. The board has the authority to issue cease and desist orders and obtain injunctive relief against violators of this act. Fantasy contest operators must submit commercially reasonable procedures and internal controls to the board for approval. These procedures and controls must prevent operators, their owners, directors, officers, employees, and their relatives from participating in fantasy contests offered by the operator. They must also prevent employees or agents from sharing protected information with third parties, prevent participants and officials in an athletic event from participating in a fantasy contest based on that event, establish limits on the number of entries a player can submit, identify highly experienced players, offer contests open to players other than highly experienced players, segregate deposits in players’ accounts from operational money, ensure privacy and online security compliance, and maintain the integrity of fantasy contests. Fantasy contest operators must comply with the approved procedures and controls and can make technical adjustments with prior notification to the board. The procedures submitted to the board are confidential and privileged, not subject to disclosure under the freedom of information act, and not admissible in private civil actions. The documents also outline the reporting and taxation requirements for fantasy contest operators. Fantasy contest operators are required to report to the board and pay a tax of 8.4% of their monthly fantasy contest adjusted revenues. However, this tax does not apply to contests run solely from a person’s private residence. The tax must be paid to the board by the twentieth day of each month and is based on the previous month’s fantasy contest adjusted revenue. The tax collected by the board is deposited into the fantasy contest fund. Failure to remit the tax results in a penalty of 5% per month, up to a maximum of 25% of the amounts ultimately found to be due, in addition to any other sanctions or penalties imposed under this act. The penalties collected by the board are deposited into the state school aid fund.
Whom does it apply to?
The documents apply to various entities including fantasy contest operators, fantasy contest players, licensed fantasy contest operators, casino licensees, and federally recognized Indian tribes licensed under the lawful internet gaming act or the lawful sports betting act.
What does it govern?
The Fantasy Contests Consumer Protection Act governs the regulation and consumer protection of fantasy contests in the state of Michigan.
What are exemptions?
Specific exemptions include contests run solely from a person's private residence, high school or youth sporting events, and events that are not athletic events.
What are the Penalties?
Penalties for violations of this act or any rules promulgated under this act are determined by the board.
Jurisdiction
Michigan