BEFORE THE BOARD OF HORSE RACING
DEPARTMENT OF LIVESTOCK
STATE OF MONTANA
In the matter of the adoption ) NOTICE OF ADOPTION
of NEW RULES I through XIII )
pertaining to parimutuel wagering )
on fantasy sports leagues )
TO: All Concerned Persons
1. On June 26, 2008, the Board of Horse Racing (board) published MAR Notice No. 32-8-193 regarding the public hearing on the proposed adoption of the above-stated rules at page 1261 of the 2008 Montana Administrative Register, issue no. 12.
2. On July 18, 2008, the board held a public hearing in Helena at which time members of the public made oral comments. Additional comments were received during the comment period.
3. The board has thoroughly considered the comments and testimony received from the public. The following is a summary of the public comments received and the board's response to those comments:
Comment 1: Several comments expressed support for the new rules and indicated general support for the design as following House Bill 616 passed during the 2007 regular session of the Montana Legislature.
Response 1: The department acknowledges the comments.
Comment 2: One commenter stated that the proposed rules are consistent with the intent of the authorizing legislation, House Bill 616, and the applicable federal statutes and therefore the proposed rules should be adopted by the Board of Horse Racing to support the economic development of horse racing in the state of Montana.
Response 2: The department acknowledges the comments.
Comment 3: One commenter opined that Montana was being shortsighted in its rules and that it should look at the Nevada model that has a more expansive regulation that permits wagering on competitive tournaments such as poker, billiards, dart tournaments, etc.
Response 3: The department acknowledges the comment and notes that the rules allow the department, with the approval of its Board of Horse Racing, to expand the games that can be part of the parimutuel wagering system.
Comment 4: Several comments noted that the Montana Lottery system seems a logical and effective overseer for fantasy sports.
Response 4: The department acknowledges the comments, and notes that the Montana Lottery is not specifically mentioned in the rules.
Comment 5: Several commenters stated that the original plan was to develop a program to help sustain and revitalize horse racing in Montana, and the new rules seem to be following the intent.
Response 5: The department acknowledges the comments.
Comment 6: One commenter questioned definition number New Rule I(5) "Fantasy sports coordinator". The commenter does not believe that this person should have the ability to select the information service to be used by the network, although the coordinator certainly may be authorized to approve it. The commenter believes this is a network responsibility.
Response 6: Although the department, through the Board of Horse Racing, always has oversight and can give direction to the limits of the coordinator in the selection process, the department will strike the word "select" and substitute the word "approve" in its place.
Comment 7: A comment was received that New Rule I(7) should have more specificity, (what equipment to be used, what propositions allowed) and a definition of parimutuel betting. The commenter thought that while the rules should require specificity, they should also allow for anything else.
Response 7: New Rule I(7) provides the definition for "Fantasy sports parimutuel system" which is a computerized system or component of a system that is used to receive wagering information from and transmit pool data to a parimutuel network. The term parimutuel network is defined in 23-4-101, MCA, as "an association licensed by the board to compile and distribute fantasy sports league rosters and weekly point totals for licensed parimutuel facilities and to manage statewide parimutuel wagering pools on fantasy sports leagues." The term "parimutuel" is defined in the dictionary as a system of betting whereby winnings are divided in proportion to the sums individually wagered. Where the term "parimutuel" is used as a descriptive term in other areas of statute and rules, it is nowhere defined separate from the term it describes. The games as offered must not violate the gambling laws in the design of the wagering. The parameters of parimutuel betting are outlined in 23-4-301, MCA. Therefore there is no need to further define parimutuel wagering and unnecessarily repeat the statutory language. The department believes that if there is a chance it might, in a given circumstance, need more clarification, the department will monitor it at this time and consider clarifying it in the future.
As to comments requesting specification on what equipment can be used and propositions are allowed, New Rule I(7) provides that a fantasy sports parimutuel system must be a computerized system or component of such a system. While a tote system similar to what is used in horse racing could be used, there would be no reason to limit what type of computer system could be used to calculate winnings if it meets the operations required of a parimutuel network in New Rule III, and a parimutuel hub in New Rule V. Therefore, the department does not believe the rule needs modification.
The commenter further states that propositions should be specified in rule. However, doing so would limit the types of games that could be played. Further the commenter expressed a need for specificity, but then suggested language that rules should allow for "anything else" when defining propositions. Such language would negate the need to provide specific propositions since "anything else" would be allowed. In addition, specifying propositions similar to horse racing (i.e., quinella, exacta, trifecta) would be contrary to any fantasy sports scheme actually conducted in the state between 1989 and 1991 which would thus violate the Professional and Amateur Sports Protection Act of 1992, 28 USC 3704. Therefore, the department does not believe there needs to be more specificity.
Comment 8: A comment was received stating that New Rule I(8) needed a stricter definition for "parimutuel wager".
Response 8: "Fantasy sports parimutuel wager" is defined in New Rule I(8) as a parimutuel wager at a licensed parimutuel facility in Montana, through a fantasy sports league, on professional sporting events offered as part of a common parimutuel pool. It emphasizes the main principles of 1) where a wager can be made, 2) through what league, 3) on what event, and 4) in what manner. Again, the games as offered must not violate the gambling laws in the design of the wagering, and the law has defined parameters on parimutuel betting. Therefore, there is no need to further define parimutuel wagering. The department does not believe a stricter definition is necessary at this time.
Comment 9: A comment was received that there is conflicting language in New Rule I(11) between league rules and board rules. And the commenter noted their opinion that the requirement for 30 days prior approval of league rules makes league rules subject to override by administrative rule.
Response 9: Official league rules are guidelines for each game that are proposed and approved by the fantasy sports coordinator. New Rule VIII(3) is the rule the commenter indirectly referred to in the comments. It provides that the network director shall prepare proposed league rules and submit the proposed rules to the fantasy sports coordinator at least 30 days prior to the beginning of the wagering period. While the parimutuel network names a network director, New Rule I(11) can be amended to refer to the "director". The department will amend New Rule I(11) and add the word "director" in place of "fantasy sports parimutuel" network. However, the department maintains that there can be no actual conflicts between league rules and board rules as proposed. The board is statutorily responsible for fantasy sports operations. Accordingly, the board must exercise this responsibility by ensuring that all games are within their guidelines and consistent thus, subjecting league rules to board approval.
Comment 10: A comment was received that New Rule I(13) – parimutuel hub, needs more description.
Response 10: The duties of a parimutuel hub are stated in New Rule V. The department maintains that New Rule V expands and adequately describes a parimutuel hub.
Comment 11: One comment was received that New Rule IV(1)(d) Parimutuel network director's requirement to advertise and promote is a business decision that does not need to be part of rules.
Response 11: The purpose of the rules is to provide funding for horse racing. It would go against the legislative intent to have those working within the system not encouraging the public to participate. The department believes it is appropriate to emphasize and direct this specific business need in the rules.
Comment 12: A comment was received that "the" network implies one network and original legislation contemplated more than one network.
Response 12: New Rule III clearly allows for multiple networks. Section (1) provides, "The board may issue parimutuel network licenses to qualified applicants." The use of plural indicates more than one network license may be issued. However, the use of "may" gives the board discretion as to who gets licensed whether or not they are qualified. Therefore, making the grammatical changes suggested by the commenter of changing the word "the" to an "a" would only suggest that multiple parimutuel networks are not permitted.
Comment 13: One comment was that post time being 5 minutes to league time gums up the process and is adequately controlled by functions like starting time and that it did not add anything to the smooth functioning.
Response 13: New Rule VIII(7) states fantasy sports parimutuel wagering shall end promptly five minutes prior to post time for each sporting event, and the machines shall be locked at that time by the parimutuel network. In reviewing the comment, the department agrees it is unnecessary to have it in New Rule VIII(7) and will delete it along with the reference to it in New Rule I(17).
Comment 14: One comment was received that the language indicating that a roster program must be provided to league player should state roster program "must be made available".
Response 14: New Rule VIII(4) language stating "the roster or program must be provided to each league member" will be amended to state "the roster or program must be made available to each league member."
Comment 15: One commenter stated that "betting week" "wagering week" adds a contradiction or level of confusion to the definition of week and should be consistent.
Response 15: New Rule I defines "administrative week" as an upcoming identified weekly period of Wednesday through the following Tuesday. "Administrative week" is defined again in New Rule VIII(3) as "a weekly period of Wednesday through the following Tuesday." "Wagering period" is defined in New Rule I(23) as a period of time as defined by league rule for a single or multiple day event. While the meaning of "administrative week" is consistent throughout, New Rule VIII(3) includes the word "wagering" prior to "administrative week" in the final sentence which may cause confusion with the term "wagering period". Therefore, the department will delete the word "wagering" two times in that paragraph and delete the word "wagering" in NEW Rule IX(8).
Comment 16: One comment was that New Rule V authorizes a fantasy sports parimutuel network to contract with the hub and believe that this was not part of the intent of the Legislature and not in House Bill 616. The commenter believes that the hub usurps the simulcast network facilities function that was defined in House Bill 616.
Response 16: The simulcast parimutuel network comprised of simulcast network facilities is clearly defined in statute 23-4-101(14), MCA. That statute describes exactly how the computerized satellite signals work. Nothing in New Rule V changes the statutory definition. The only way to legally establish the relationship between the company or person that operates and/or owns the main satellite computer system (the hub) and the licensees (facilities) that make up the parimutuel network is to have the licensees sign licensing agreements also known as contracts. New Rule V describes exactly how a licensed parimutuel facility must operate. The rule follows the requirements in the law for a facility operating on a simulcast parimutuel network. The department maintains that no changes are necessary in light of how parimutuel networks must be set up under the law.
Comment 17: One commenter expressed concern that the rules have been drafted in haste and may be subject to federal legal challenges should the federal government become involved and that it mandates an expansion of gambling. Also that the Lottery cannot offer fantasy sports because fantasy sports are in Title 23, chapter 5, part 5, MCA.
Response 17: The department has not drafted the rules in haste and in fact thoroughly reviewed the legal issues the commenter touches upon in their comments.
The department responds that HB 616 and the proposed rules are permissible under both state and federal law. The rules and the potential involvement of the Montana Lottery are not an expansion of an illegal form of gambling. The Montana Board of Horse Racing is authorized by law to provide for fantasy sports leagues and enact rules that define the parameters for any licensee that will conduct fantasy sports league games on behalf of the board. Sections 23-4-101(6), 23-4-104(12), and 23‑5‑802, MCA. Fantasy sports must be conducted by a licensee on a system that has been approved by the Board of Horse Racing and meets the requirements for license by board. Fantasy sports leagues in Montana cannot be conducted over the Internet or telephone. Section 23-4-301(8)(c), MCA. (Under federal law fantasy sports leagues are exempted from the Unlawful Internet Gambling Enforcement Act of 2006, 31 USC 5361-5367 (2006). The language in the Gambling Enforcement Act does not preempt state law, but leaves it to the states to determine whether a game or contest is illegal under its laws. The Gambling Enforcement Act Section 5362(1)(E)(ix) explicitly exempts participation in any fantasy sports games from the Act's prohibited gambling activities.
The Montana State Lottery Act of 1985, 23-7-101, MCA permits the lottery to offer a broad range of lottery games. A "lottery game" is defined in 23-7-103(4)(a) and (b), MCA. Section 23-7-103(4)(a), MCA reads: "'Lottery game' means any procedure, including any online or other procedure using a machine or electronic device, by which one or more prizes are distributed among persons who have paid for a chance to win a prize and includes but is not limited to weekly (or other, longer time period) winner games, instant winner games, daily numbers games, and sports pool games."
The definition of a "lottery game" in 23-7-103(4)(b), MCA specifically prohibits the Lottery from offering games that are found in parts 1 through 5 of Title 23. The Lottery cannot offer games prohibited by Title 23, chapter 5, part 1, MCA. (Title 23, chapter 5, part 1, MCA, contains the general definitions and prohibitions on certain types of gambling.) Nor can the Lottery offer Calcutta pools governed by Title 23, chapter 5, part 2, MCA; card games regulated by Title 23, chapter 5, part 3, MCA; raffles and bingo games governed by Title 23, chapter 5, part 4, MCA; and any sports pools that are governed by Title 23, chapter 5, part 5, MCA. The only other limitations on any lottery game are in 23‑4-301(8)(a) and (b), MCA. Sections 23-4-301(8)(a) and (b), MCA, require fantasy sports to be offered on a parimutuel system and not through pool selling or bookmaking and it cannot sell to minors.
The definition of "lottery game" includes fantasy sports because it meets all the requirements of the defined games that may be created by the Lottery. Parimutuel games for fantasy sports can be played "…using a machine or electronic device, by which one or more prizes are distributed among persons who have paid for a chance to win a prize and includes but is not limited to weekly (or other, longer time period) winner games, instant winner games, daily numbers games, and sports pool." Also, fantasy sports are not within the specific exclusions in the lottery game definition.
The Board of Horse Racing was given very broad authority to write rules defining much of the structure for fantasy sports. In the course of doing the rules, the Board of Horse Racing has entered into a legal Memorandum of Understanding with the Lottery to have the Lottery act as the parimutuel network. The game(s) that Board of Horse Racing is having the Lottery develop and launch do not have fixed odds. It is important not to confuse "sports pools" as defined in Title 5, chapter 5, part 5, MCA, with fantasy sports that are authorized by Title 23, chapter 5, part 8, MCA. Fantasy sports are covered in part 8, not part 5. Congress has always left the issue of what gambling or gaming activities are legal in the fifty states to each state to provide for under its laws. 15 USC 3001. The only the types of gambling and gambling activity allowed for in Montana are in Title 23.
Since Congress exempted fantasy sports for the Gambling Enforcement Act, federal courts have issued decisions giving maximum protection to fantasy sports gaming in spite of a variety of challenges to it. In a 2007 federal district court case the court ruled that fantasy sports is not gambling. In Humphrey v. Viacom, Inc., et. al. 2007 U.S. Dist. Lexis 44679, a challenge was brought that the defendants had unlawfully expanded gambling in violation of New Jersey state law. The court concluded that fantasy sports was not an illegal expansion of gambling. It required a degree of skill and it was far removed from what the gambling statutes were intended to regulate. Humphrey v. Viacom, Inc., et. al. 2007 U.S. Dist. Lexis ¶¶ 24, 31.
More recently, the U.S. Supreme Court declined to hear the appeal by the National Football League Players Association in a case entitled C.B.C. Distrib. & Mktg v. Major League Baseball Advanced, L.P, (8th Cir., Mo., 2007) 505 f.3d 818, 2007 U.S. App. LEXIS 24192, cert. denied 2008 U.S. 4574; 76 U.S.L.W. 3636. Central to the case was the right of the seller to use the players' names in the fantasy sports games after a licensing agreement with the players expired. Ultimately, the players lost because their names were already in the public domain.
Passage of the Unlawful Internet Gambling Enforcement Act of 2006, with its exemption for fantasy sports, and the analysis in the federal cases, make any successful attack on fantasy sports under another federal law unlikely. That law is the federal Professional and Amateur Sports Act (PASPA). The legality of Montana's fantasy sports activity partially turns on the section within PASPA on "applicability." Essentially that section grandfathered active sports gambling that existed before PASPA's passage. 28 USC 3704. Montana certainly had limited sports betting prior to passage of PASPA. Montana (together with Nevada, Oregon, and Delaware) is recognized as a state that offered sports gambling prior to PASPA's passage. Consequently, some forms of Montana sports gambling are exempted from PASPA's general prohibition.
The Professional and Amateur Sports Protection Act was Congress' attempt at curbing sports gambling which could erode the integrity of sporting contests and expose players to influence by unscrupulous elements. The operative portion of the bill is 28 USC 3702. Professional sports associations have been vocal opponents of sports gambling because of the threat gambling poses to the public's perception of the integrity of the contests and because of the threat of pressure upon athletes or officials to affect the outcome of contests. In the parimutuel system set up under fantasy sports in Montana and elsewhere, undue influence is a not a possibility because a fantasy team requires a minimum of two players and is not based on the outcome of the actual sports game.
Comment 18: A second commenter believed that fantasy sports are authorized by Title 23, chapter 5, part 5, MCA, thereby prohibiting the Montana Lottery's involvement with the Board of Horse Racing.
Response 18: Fantasy sports is not covered in Title 23, chapter 5, part 5, MCA. Fantasy sports is covered in Title 23, chapter 5, part 8, MCA.
Comment 19: One comment was received that New Rule II and New Rule IV address the licensing and duties of the parimutuel network director that each parimutuel network must name. The comment was that House Bill 616 does not require each parimutuel network to have a director.
Response 19: Section 23-4-104, MCA gives the Board of Horse Racing broad rulemaking authority over how fantasy sports and fantasy sports betting would actually operate. The board is charged with promulgating rules that govern how fantasy sports would be implemented. New Rule II and New Rule IV merely require that each licensee have a person designated, i.e., named as the parimutuel network director for that licensee. Practically it would be impossible to operate the network without knowing who speaks for the licensee as a responsible party. The department maintains that the new rules are within the scope of the board's statutory authority.
Comment 20: One comment was that in 23-4-104, MCA there is not a grant of authority allowing the Board of Horse Racing to create license positions in the fantasy sports area.
Response 20: Section 23-4-104(12), MCA must be read in conjunction with 23‑4‑101(10) and (11), MCA and 23-4-201(8), MCA clearly requiring the Board of Horse Racing to license parimutuel facilities and systems in the fantasy sports area.
Comment 21: One comment was that the proposed rules are undertaking actions that are beyond the grant of rulemaking authority, thereby violating MAPA and also do not conform with the sponsor's Rep. McChesney, or the 2007 Legislature's intent in passing House Bill 616.
Response 21: The department maintains that the heart of this comment was in the context of the comments directed at the potential for the Montana Lottery to partner with the Board of Horse Racing and the mistaken belief that the Montana Lottery could not offer fantasy sports games. The department maintains that the concern about going beyond the sponsor or Legislature's intent, and therefore MAPA with its rules, is without any legal basis. The department addressed this issue in Responses numbered 17, 18, and 22.
Comment 22: One comment was that there is clearly no intent manifested in House Bill 616 by the Legislature to show that participation by the State Lottery was ever contemplated.
Response 22: The department believes that House Bill 616 appropriately does not favor any particular individual, entity, or vendor over another, nor were the rules targeted at any singular individual, entity, or vendor. The department believes House Bill 616 does not preclude the Montana Lottery; if it had been intended to do so it would have added fantasy sports to the list of excluded activities listed in 23‑7‑103(4)(b), MCA.
4. The department has adopted the following new rules as proposed, but with the following changes from the original proposal, new matter underlined, deleted matter interlined:
NEW RULE I (32.28.2201) DEFINITIONS As used in this chapter, the following definitions apply:
(1) "Administrative week" means an upcoming identified weekly period of Wednesday through the following Tuesday.
(2) "Board" means the Montana Board of Horse Racing provided for in 2‑15‑3106, MCA.
(3) "Breakage" means the odd cents over a multiple of ten cents arising from the computation of odds and payoffs on parimutuel fantasy sports wagers.
(4) "Common parimutuel pool" means a parimutuel wagering pool consisting of the parimutuel fantasy sports wagers placed at two or more licensed parimutuel facilities in Montana.
(5) "Fantasy sports coordinator" means an official hired by the Department of Livestock (the department) to regulate, audit, approve network operating plans, approve league rules, receive point totals from network, designate point totals as "official," annually
select approve the information service to be used by the network, and control and supervise overall conduct and operation of parimutuel fantasy sports wagering.
(6) "Fantasy sports league" has the meaning found at 23-5-801, MCA.
(7) "Fantasy sports parimutuel system" means a computerized system or component of a system that is used to receive wagering information from and transmit pool data to a parimutuel network.
(8) "Fantasy sports parimutuel wager" means a parimutuel wager at a licensed parimutuel facility in Montana, through a fantasy sports league, on professional sporting events offered as part of a common parimutuel pool.
(9) "Information service" means a person or entity chosen annually by the fantasy sports coordinator to sell or provide information to the licensed fantasy sports parimutuel network, from among those services providing statistics from the individual sport's sanctioning body, and gather statistics on professional team and individual performances, which information is used to create rosters or programs of available professional sports players and teams.
(10) "League member" means a person at least 18 years of age who participates in fantasy sports parimutuel wagering at a Montana-licensed fantasy sports parimutuel facility. The term does not include a corporation, partnership, limited liability company, trust, estate, or any other entity.
(11) "Official league rules" means a set of operating guidelines and requirements proposed by the
fantasy sports parimutuel network director and subsequently approved by the fantasy sports coordinator, to govern selection of individual sport, selection of players, method of point calculation or scoring, and other information within parameters set by board rule. The rules must be available to each league member and provided upon request. Each set of official league rules must be approved by the fantasy sports coordinator and made official before being used by the network or a parimutuel facility.
(12) "Parimutuel facility" has the meaning found in 23-4-101, MCA, as a facility licensed by the board at which fantasy sports leagues are conducted and wagering on the outcome under a parimutuel system is permitted. In addition, the parimutuel facility must be licensed pursuant to the provision of Title 23, chapter 4, MCA, and
[NEW RULE VI] ARM 32.28.2206.
(13) "Parimutuel hub" means a system to which the parimutuel network will be connected, and which monitors all fantasy sports parimutuel wagering in Montana.
(14) "Parimutuel network" has the meaning found at 23-4-101, MCA, as an association licensed by the board to compile and distribute fantasy sports league rosters and weekly point totals for licensed parimutuel facilities and to manage statewide parimutuel wagering pools on fantasy sports leagues. In addition, the term includes a person engaged in providing the parimutuel fantasy sports system or service directly related to the reconciliation of a common fantasy sports parimutuel pool and transfer of funds between the participating fantasy sports parimutuel facilities. A parimutuel network must be physically located in Montana and operated in Montana.
(15) "Parimutuel network director" means a person or office licensed by the board to solicit facility sites for the network, provide equipment to connect to the parimutuel hub, verify all takeout amounts are collected from the facilities and distributed to the board, advertise, promote, select individual fantasy sports games in which the network may participate, and calculate point totals for professional players or teams based on previously-defined rules for award of points.
(16) "Pool data" means data regarding the results, payoffs, odds or payoff prices, and the aggregate amount of parimutuel fantasy sports wagers accepted on each professional sporting event by all parimutuel fantasy sports facilities.
(17) "Post time" means five minutes before the scheduled start of a professional sporting event or such other time as designated by league rule.
(18)(17) "Roster" or "program" means a list of eligible professional sports participants for the appropriate period; eligible specific professional sports races, games, matches, or contests for the appropriate period; and types of combination wagers eligible to be placed for that sport in that period. The roster or program must be prepared by the Montana licensed parimutuel network for fantasy sports, and must be provided to each league member.
(19)(18) "Sporting event" means an individual race, game, match, or contest, and any group, series, or part thereof from a given professional sport. The term does not include horse or dog races.
(20)(19) "Takeout" means an amount retained and not returned to patrons by a licensed parimutuel fantasy sports facility from the aggregate amount of parimutuel fantasy sports wagers.
(21)(20) "Team" means a fictitious team of not less than two players composed of athletes from a given professional sport.
(22)(21) "Wagering information" means the amount of parimutuel fantasy sports wagers accepted for each sporting event by a single parimutuel fantasy sports facility.
(23)(22) "Wagering period" means a period of time as defined by league rule for a single or multiple day event.
AUTH: 23-4-104, MCA
IMP: 23-4-101, 23-4-104, 23-4-201, 23-4-202, 23-4-301, 23-4-302, 23-4-304, 23‑5‑801, 23-5-802, 23-5-805, 23-5-806, MCA
NEW RULE VIII (32.28.2208) GENERAL CONDUCT OF FANTASY SPORTS PARIMUTUEL WAGERING (1) The network director shall prepare proposed league rules for each sporting event on which the network will offer parimutuel wagering during a designated wagering period. The proposed league rules shall include:
(a) a description of the eligible specific professional sports races, games, matches, or contests on which parimutuel wagering will be allowed;
(b) types of combination wagers eligible to be placed for a sport under league rules in any parimutuel wagering period; and
(c) a list of eligible professional sports participants for the appropriate period.
(2) The parimutuel network director shall submit the proposed league rules to the board's fantasy sports coordinator for approval at least 30 days prior to the wagering period during which the sporting event will occur or during which parimutuel wagering will be allowed under those league rules. No league rules shall be provided by the network to the hub, facility, or wagering public before the league rules are approved by the fantasy sports coordinator and made official.
(3) The parimutuel network director shall select one or more sporting events, from among the sets of official league rules approved by the fantasy sports coordinator, on which parimutuel wagering will be conducted during an upcoming administrative week, identified as a weekly period of Wednesday through the following Tuesday. The network director shall notify the fantasy sports coordinator in writing at least one week prior to the appropriate
wagering administrative week as to which sporting events under official league rules will be included in each particular wagering administrative week.
(4) The parimutuel network shall compile a roster or program for the appropriate period, including eligible specific professional sports races, games, matches, or contests for the appropriate period, types of combination wagers eligible to be placed for that sport in that period, and a list of eligible professional sports participants. The roster or program must be
provided made available to each league member. The roster or program shall be placed into the parimutuel computer system for the appropriate periodic start date.
(5) Each periodic sporting event roster or program must be provided by the network to each licensed parimutuel facility. Each periodic sporting event roster or program must also be provided to the parimutuel wagering public. The roster or program must be provided in hard copy, but may also be available via an Internet site.
(6) Fantasy sports parimutuel wagering shall be conducted within the appropriate wagering period for each sporting event for which league rules have been made official by the coordinator, and which has been chosen and is being offered by the network under its periodic roster or program.
(7) Fantasy sports parimutuel wagering shall end promptly five minutes prior to post time for each sporting event, and the machines shall be locked at that time by the parimutuel network.
(8)(7) While the sporting events are underway, a running total of points may be calculated by the information service and provided by the networks to the network facilities via Internet or other means.
(9)(8) When each individual sporting event is concluded, the network, through its information service, shall calculate point totals. Based on the point totals, the official winners are declared, and made official by the fantasy sports coordinator. Any error in point calculations discovered after the point totals are made official by the coordinator shall be disregarded. The point totals shall be promptly provided to the parimutuel hub. Winning tickets may be cashed at any time after the sports event results are made official.
(10)(9) At the conclusion of each periodic sporting event, the hub shall send reconciliation statements showing amounts handled on each individual sports event to the parimutuel facilities, parimutuel network, and the fantasy sports coordinator.
(11)(10) The parimutuel network shall remit the correct takeout amount from all parimutuel facilities to the board within seven days after the conclusion of each administrative week. The remitted amount shall not include breakage or unclaimed ticket amount takeout.
(12)(11) The board shall distribute the takeout amount as per 23-4-302, MCA.
AUTH: 23-4-104, 23-4-202, MCA
IMP: 23-4-202, 23-4-302, 23-4-304, 23-5-801, 23-5-805, MCA
NEW RULE lX (32.28.2209) FANTASY SPORTS PARIMUTUEL OPERATIONS (1) Wagering will only be permitted at a licensed fantasy sports parimutuel facility by means of a parimutuel system that has been approved by the board.
(2) No employee of the parimutuel network, parimutuel director, parimutuel facility, or hub operations may place a wager for the employee personally or any other person during the actual work period for which the employee is licensed as a parimutuel occupational employee.
(3) Any claim by a patron that a wrong ticket has been delivered must be made before leaving that parimutuel ticket window or parimutuel self service machine. No claim shall be considered after that time, and no claim shall be considered for tickets that are discarded, lost, changed, destroyed, or mutilated beyond identification. Payment will be made only upon presentation of appropriate parimutuel tickets.
(4) The parimutuel facility licensee shall not sell or cash parimutuel tickets to persons under 18 years of age. Signs indicating that persons under age 18 are not allowed to wager shall be conspicuously displayed near the selling and cashing windows.
(5) The parimutuel facility shall ensure that all parimutuel tickets sold on a sporting event during an administrative week are purchased or cashed from the regular ticket windows or parimutuel self service machine.
(6) All parimutuel facility employees working with parimutuel selling machines must be licensed by the board and given instructions by the facility manager, network director, or their designee prior to the start of their duties.
(7) The parimutuel facility shall make available to the public the actual winning amount to be paid for each winning ticket after results are made official.
(8) A parimutuel facility shall complete all forms summarizing each
wagering administrative week's mutuel operations, and verification of the payoff computations, and completion of such other forms as may be required by the network director or fantasy sports coordinator.
(9) The parimutuel network shall ensure payouts, pool totals, and winning combinations for each fantasy sports event are available to the public at each licensed parimutuel facility after the official results have been posted.
(10) The parimutuel facility shall conspicuously display rules at its licensed premises which govern wagering transactions with patrons. The rules must specify takeout amounts, the amounts to be paid on winning wagers, and the redemption period for winning tickets.
(11) The parimutuel network and network director are responsible for the accuracy of all payoff prices.
(12) The parimutuel network director shall prepare or have prepared a parimutuel recapitulation form at the end of each administrative week. The recapitulation form shall be provided to the fantasy sports coordinator or the board.
(13) The parimutuel network licensee may be required to furnish a certified public accountant, licensed to practice in Montana, with the following duties:
(a) completion of the forms summarizing each week's
mutual mutuel operation;
(b) verification of the payoff computations;
(c) completion of such other forms as may be required by the board; and
(d) submission of financial statements covering parimutuel operations for the fiscal year.
(14) The parimutuel network director must verify deposit of all receipts and submit statements showing parimutuel receipts, percentages retained, and such other information as may be required for the proper administration of the law to the fantasy sports coordinator and the board. The information shall be submitted within seven days after the close of the fantasy sports administrative week.
(15) The parimutuel network shall report to the fantasy sports coordinator and the board the total face value of all unclaimed winning tickets quarterly.
AUTH: 23-4-104, 23-4-202, MCA
IMP: 23-4-202, 23-4-302, 23-4-304, 23-5-801, 23-5-805, MCA
5. The board has adopted NEW RULE II (32.28.2202), NEW RULE III (32.28.2203), NEW RULE IV (32.28.2204), NEW RULE V (32.28.2205), NEW RULE VI (32.28.2206), NEW RULE VII (32.28.2207), NEW RULE X (32.28.2210), NEW RULE XI (32.28.2211), NEW RULE XII (32.28.2212), and NEW RULE XIII (32.28.2213) as proposed.
BOARD OF HORSE RACING
DEPARTMENT OF LIVESTOCK
BY: /s/ SHERRY K. MEADOR BY: /s/ CHRISTIAN MacKAY
Sherry K. Meador Christian Mackay, Executive Director
Alternate Rule Reviewer DEPARTMENT OF LIVESTOCK
Certified to the Secretary of State on August 18, 2008.