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  • cAUmberlandtiger8

    Issues an opinion that fantasy sports are illegal gambling.

    http://www.tennessean.com/story/news/politics/2016/02/24/fantasy-sports-regulation-bill-advances-tennessee-senate/80868164/

    Support DFS in Tennessee HERE: https://fantasysportsforall.com/connect/tennessee/

  • whodat2

    Bill Summary:

    Bill Summary

    This bill creates an advisory task force to review online simulated competitions, including online fantasy football, and recommend any necessary statutory revisions to the consumer protection laws that should be made to protect consumers when paying to participate in an online simulated competition.

    By July 1, 2016, the speaker of the senate, the speaker of the house, and the attorney general and reporter will each appoint three members to comprise the task force. The task force will report its findings and recommendations to the governor, the speaker of the senate, and the speaker of the house by no later than January 1, 2017. This bill requires the department of commerce and insurance to provide administrative support services to the task force created pursuant to this bill.

    The members of the task force will serve without compensation, but will be eligible for reimbursement for travel expenses in accordance with the comprehensive travel regulations promulgated by the department of finance and administration and approved by the attorney general. The task force will cease to exist upon completion of the task force’s report and recommendations.

    ON MARCH 28, 2016, THE SENATE ADOPTED AMENDMENTS #2 AND #4 AND PASSED SENATE BILL 2109, AS AMENDED.

    AMENDMENT #2 rewrites this bill and establishes licensing requirements for fantasy sports operators.

    Under this bill, it will be considered the Class B misdemeanor offense of gambling promotion for a person to offer fantasy sports contests through an online digital platform that enables Tennessee consumers to participate in such contests without that person being licensed as a fantasy sports operator by the secretary of state. This amendment sets out in detail the requirements for applying for a license and the information that must be provided. Included in such information to be provided is information that demonstrates the applicant:

    (1) Limits individual player deposits to no more than $2,500 per month, unless the player provides reasonable certification or proof to the fantasy sports operator that the player’s deposit limit should be increased; protects player funds on deposit by, at a minimum, segregating player funds from operating funds and maintaining a reserve for the benefit and protection of authorized players’ funds in fantasy sports accounts; and limits each player to one active and continuously used account.

    This amendment requires licensee to maintain records of all player accounts and to submit annual reports of all fantasy sports accounts opened or maintained by Tennessee consumers to the secretary of state. This amendment delineates the information that must be included in the reports.

    This amendment requires the secretary to oversee the licensure of fantasy sports operators that seek to operate in this state; and to require that all licensed fantasy sports operators contract annually with a third party to perform an independent audit to ensure compliance with this amendment. This secretary of state must also provide information to the department of revenue to assist in its administration and collection of taxes applicable to fantasy sports operators; require fantasy sports operators to report annually all winnings earned by fantasy sports players on online platforms supported by the fantasy sports operator to the secretary of state; maintain a registry of fantasy sports operators licensed to operate in this state; and conduct investigations regarding alleged violations. The secretary of state will also establish appropriate fees for application and license renewal, and other applicable fees. This amendment authorizes the secretary of state to charge an online transaction fee to cover costs associated with processing payments for applications for licensure or renewals of licensure submitted online.

    This amendment imposes several restrictions on fantasy sports operators, including the following:
    (1) Fantasy sports operators may not offer auto draft to players or allow players to select from pre-selected teams of athletes in fantasy sports contests;
    (2) Fantasy sports operators may not knowingly allow a minor to participate in any fantasy sports contest;
    (3) Fantasy sports operators may not knowingly offer fantasy sports contests based on high school or college sporting events or sports whose participants are predominantly minors;
    (4) Fantasy sports operators’ advertisements for fantasy sports contests may not target minors or be misleading; and
    (5) Fantasy sports operators must offer some fantasy sports contests open only to beginning players and that exclude highly experienced players.

    A violation of restrictions placed on operators will constitute a violation of the Tennessee Consumer Protection Act. Generally, a violation of the Act is a Class B misdemeanor and subjects the violator to a private cause of action by a person who has been damaged by the violation, and, in the case of a willful or knowing violation, the injured party may recover treble damages. The attorney general and reporter will have all of the investigative and enforcement authority that the attorney general and reporter has under the Act relating to alleged violations of this amendment.

    This amendment creates the “fantasy sports fund”. Any fee or penalty collected pursuant to this amendment will be deposited in the fantasy sports fund. All costs of the secretary of state associated with the administration of this amendment will be paid from the fund. If there is remaining any amount in the fantasy sports fund at the end of any fiscal year, 10 percent of the remaining amount will not revert to the general fund but will remain available for paying the costs of administration.

    If it is determined has violated this bill, the secretary of state may, after notice and an opportunity for hearing, do any of the following or both:
    (1) Suspend, refuse to renew, or revoke a license;
    (2) Impose a fine of not more than $25,000 per violation.

    Any fantasy sports operator who engages in or offers to engage in fantasy sports contests with Tennessee consumers without a license will be ineligible to apply for a license for a period of 12 months after the violation occurred.

    This amendment specifies that the secretary of state and other state and local entities will allow fantasy sports operators that are operating in this state as of the passage of this bill to continue to legally operate until the later of:
    (1) A fantasy sports operator obtaining a fantasy sports operator license; or
    (2) 60 days after applications for licensure as a fantasy sports operator are made available to the public by the secretary of state.
    The secretary of state will have until July 1, 2016, to make applications for fantasy sports operator licenses available, and 30 days after receiving an initial application for such license to issue or deny the license.

    AMENDMENT #4 clarifies that the standards with which the independent audit of a licensed fantasy sports operator must comply are the “attestation standards established by the American Institute of Certified Public Accountants”, rather than the “standards established by the public accounting oversight board”. This amendment also clarifies that the secretary will receive an “audit report” concerning each independent audit instead of the “audit records”.

    ON APRIL 18, 2016, THE HOUSE SUBSTITUTED SENATE BILL 2109 FOR HOUSE BILL 2105, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 2109, AS AMENDED.

    AMENDMENT #2 enacts the “Fantasy Sports Tax Act” to impose a six percent privilege tax on all adjusted revenues of a fantasy sports contest offered by a fantasy sports operator to Tennessee consumers. For purposes of the tax imposed by this amendment:

    (1) “Adjusted revenues” means, for each fantasy sports contest, the amount equal to the total entry fees collected from all participants entering the fantasy sports contest less winnings paid to participants in the contest, multiplied by the resident percentage; and
    (2) “Resident percentage” means, for each fantasy sports contest, the percentage, rounded to the nearest tenth of a percent of the total entry fees collected from Tennessee consumers divided by the total entry fees collected from all players, regardless of the players’ location, of the fantasy sports contest.

    The tax imposed by this amendment will be payable quarterly.

    The revenue from the taxes imposed by this amendment will be distributed as follows:

    (1)
    (A) From July 1, 2016, to June 30, 2017, 60 percent will be allocated to the general fund; and
    (B) Beginning July 1, 2017, and thereafter, 68 percent will be allocated to the general fund;
    (2) 20 percent will be allocated among the counties of the state in the proportion that the population of each bears to the aggregate population of the state according to the most recent federal census and other censuses authorized by law;
    (3) 10 percent will be allocated to the fantasy sports fund established by this bill; and
    (4)
    (A) From July 1, 2016, to June 30, 2017, 10 percent will be allocated to the department of revenue for; and
    (B) Beginning July 1, 2017, and thereafter, two percent will be allocated to the department of revenue for administrative expenses.

  • Olhausen

    @Cameron said...

    Admin Note

    We are hearing the Senate’s final vote is this afternoon. If you haven’t yet emailed your legislator, please locate your senator (house already voted) here (under “Find My Legislator” on the right side of the page), then send them an email letting them know why DFS is an important hobby for you. Thanks!

    I’m a little confused. I thought we were in the clear already. I didn’t know we still needed another vote.

  • Olhausen

    @TnCowboy said...

    Should have qualified my response. I am also on Twitter, FB, etc. Also have several folk here at work today crying about it.

    I hear you and I agree that I’d rather have regulated dfs then no dfs.

  • Cameron

    RG Co-Founder

    • 2014 FanDuel NFL Survivor Champion

    • 2016 RG Season Long Champion: NFL

    @thorpedoboom said...

    The new bill says u can only do $2500 per month in entry fees. So that is not just new deposits on sites per month I guess. I do usually more than $2500 in entry fees a month but from just winnings not deposits. I don’t know how they regulate that if people play multiple sites.

    Just to clarify in case any were confused, the limit is on deposit limits. The AP misreported. Also, that deposit limit may be able number to be increased with proof of income.

  • Cameron

    RG Co-Founder

    • 2014 FanDuel NFL Survivor Champion

    • 2016 RG Season Long Champion: NFL

    @Olhausen said...

    I’m a little confused. I thought we were in the clear already. I didn’t know we still needed another vote.

    The Senate approved the bill, but an amendment was added in the House. The Senate now needs to re-vote on the amended bill. Last time there was only 1 “no” vote in the Senate, so hopefully not many have changed their mind during the time that passed.

  • Cameron

    RG Co-Founder

    • 2014 FanDuel NFL Survivor Champion

    • 2016 RG Season Long Champion: NFL

    The bill passed the Senate with a vote of 27-2. Thanks for everyone who reached out. It is off to the governor’s desk next

  • bdub02

    @whodat2 said...

    BTW, where in TN is everyone from? Cookeville here.

    I am from Sparta, currently living in McMinnville.

  • TnCowboy

    @whodat2 said...

    BTW, where in TN is everyone from? Cookeville here.

    Madisonville here. My company is in Cookeville twice a week!

  • dgriff

    I’m in Germantown just outside of Memphis.

  • intimadator2007

    @Cameron said...

    The bill passed the Senate with a vote of 27-2. Thanks for everyone who reached out. It is off to the governor’s desk next

    This is awesome ! Hope some of the other states learn from this .

  • rush1228

    Great news for us in Tn.Mississippi bill passed today also.Good luck to everyone else.

  • ballabal

    Great news!

  • jcrebs

    I now only play on two sites , Yahoo and Fantasy Up. Both have single/limited entry contests that are appealing to a small $ player like myself. However, both sites have a small # of players, and I wonder if the license fee, and the Fantasy Sports Tax act will make Tennessee undesirable for them from a financial perspective. Probably not for the first year, but if they don’t grow their player base, and other states pass similar measures, the small DFS companies may all go away.

  • Simba19

    Chattanooga here
    Work all over the state booking freight

  • drbubba

    This is really great. Gives me hope that it will eventually work out everywhere. If Bama lags, I will move to TN. Love it there anyway, and I just want to land somewhere where all these worries go away.

  • Olhausen

    So does anyone know a timetable on when the governor will hopefully sign the bill into law?

  • rebkell

    @Olhausen said...

    So does anyone know a timetable on when the governor will hopefully sign the bill into law?

    I was wondering the same thing.

  • rebkell

    I did find this on the internet:
    http://www.statescape.com/resources/legislative/bill-signing-deadlines.aspx

    Tennessee The governor must sign or veto legislation within 10 days of transmittal (excluding Sunday), or it becomes law without his/her signature.

  • MrFantasy

    @Cameron said...

    Just to clarify in case any were confused, the limit is on deposit limits. The AP misreported. Also, that deposit limit may be able number to be increased with proof of income.

    I think it should be based on assets and not just income. If I have $500k in liquid assets but make $25k a year because I’m going back to school they are going to tell me how much I can/can’t play on any given night? Doesn’t seem right to me.

  • dgriff

    Just saw an article that the governor signed the bill.

  • rebkell

    @dgriff said...

    Just saw an article that the governor signed the bill.

    http://www.legalsportsreport.com/9774/tennessee-governor-signs-daily-fantasy-sports-bill-law-third-state-regulate-dfs/

  • jcrebs

    @jcrebs said...

    I now only play on two sites , Yahoo and Fantasy Up. Both have single/limited entry contests that are appealing to a small $ player like myself. However, both sites have a small # of players, and I wonder if the license fee, and the Fantasy Sports Tax act will make Tennessee undesirable for them from a financial perspective. Probably not for the first year, but if they don’t grow their player base, and other states pass similar measures, the small DFS companies may all go away.

    Recvd the following email today from FantasyUP ( iTeam network). “ as of last night Iteam has suspended its participation with the state of Tennessee. This is most likely permanent until we reach an agreement with state officials, there is a slight chance that could change in the next few days but as of today we are not sure.” Not surprised with their action, I may be their only player in tn., can’t buy license and pay tax just for me.

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