The Missouri Gaming Commission met this week to begin implementing a law regulating paid-entry fantasy sports in the state, with regulation starting this September.
Missouri is one of six states to enact a law dealing with fantasy sports this year.
What the MGC did
The gaming commission met to start making rules regarding fantasy operators that want to serve Missouri’s now-regulated market. The law will largely apply to daily fantasy sports operators like DraftKings and FanDuel. DFS operator FantasyDraft indicated to Legal Sports Report that it intends to apply for a license, as well.
The law technically doesn’t go into effect until August 28th; the emergency rule from the MGC goes into force on September 8.
You can see the emergency rule adopted by the MGC here. Among its main provisions:
- Sites that operated in Missouri prior to April 1 of this year may continue operating until “they receive or are denied a license.” The MGC estimates that will effect seven operators, who must apply for a license before Oct. 1.
- The rule notes many of the consumer protections implemented by the law, which licensed sites must abide by once licensed. That includes contracting with a “Certified Public Accountant to conduct an annual financial and internet website audit to ensure compliance with the law.”
- Procedures for holding hearings regarding fantasy contest applicants and licensed operators were established.
The emergency rule expires in March of next year, at which time permanent rules will be enacted.
Proposed rules in Missouri
In addition to the emergency rule adopted, The MGC published proposed rules regarding fantasy contests.
That includes an application that operators must fill out that is 22 pages in length, which is a fairly comprehensive document that appears to be in line with the scrutiny that gambling license applicants would face.
There is also a personal disclosure form, which must be “completed by each key person, employee, and any other individual as directed by the commission.”
One of the rules — two pages in length — deals with the mechanics of how operating funds must be segregated from players’ funds.
The MGC will hold a hearing on Nov. 2 about the proposed rules; members of the public can make comments in advance of that meeting up to 30 days after the publication of the proposed rules.
How did the MGC get to its fantasy sports rules?
Besides following its statutory obligations, the MGC said it worked with some fantasy sports operators in drafting the rules:
“We met with two large operators and two small operators prior to drafting these rules and we solicited comments from three of those companies. We received comments from all three operators and made changes as appropriate and consistent with our statutory duties.”
According to the St. Louis Post Dispatch, Missouri also worked with other states, including Tennessee, in crafting regulations.
States are starting to ramp up on fantasy sports laws
After a flurry of fantasy sports laws were passed this spring, the laws are just starting to take effect in a number of jurisdictions: