BASIS AND PURPOSE FOR RULE 1
The purpose of Rule 1 is to provide definitions of various terms used throughout the Fantasy Contest Operator Rules of the Colorado Division of Gaming so that the Rules can be uniformly applied and understood. The definitions in 44-30-103, C.R.S. and 44-30-1501, C.R.S. shall also apply throughout this document. The statutory basis for Rule 1 is found in sections 44-30-1604(1), C.R.S., 44-30-203, C.R.S., and Part 16 of Article 30 of Title 44, C.R.S.
1.1Scope and purpose.These Rules are promulgated in order to carry out the powers and duties of the Director of the Division of Gaming, Department of Revenue ("Director") pursuant to Article 30 of Title 44, C.R.S., for the purpose of licensure or registration of fantasy contest operators and to ensure the integrity of fantasy contests conducted in the State of Colorado. These Rules shall be binding on every person authorized to operate as a fantasy contest operator or a small fantasy contest operator in Colorado. All persons licensed or registered under Article 30 of Title 44, C.R.S., are charged with having knowledge of the existence of these Rules and shall be deemed to be familiar with their provisions and to understand the Rules.
These Rules are severable. If one Rule or portion of a Rule is found to be invalid, all other Rules or portions of Rules that can be enforced without the invalid Rules shall be enforced and shall remain valid.
These Rules are not intended, and shall not be construed, to affect or limit in any way the jurisdiction or regulation of any individual or entity by any federal, state, or local government or subdivision thereof, including but not limited to the Colorado Department of Revenue and its Divisions.
1.2Definitions.All terms defined in sections 44-30-103, C.R.S., and 44-30-1501, C.R.S., shall have the same meaning in these Rules. In addition, as used in Article 30 of Title 44, C.R.S., and these Rules:
(1) "Active patron account" means a patron's account that has the patron's email address on file with the fantasy contest operator, a residential address in Colorado, and has paid an entry fee for a fantasy contest, agreed to pay an entry fee for a fantasy contest, or has made a monetary deposit to the patron's account within the past 365 days.(2) "Applicant" means any individual or entity that has applied for an initial license or registration or a renewal license or registration to operate in Colorado as a fantasy contest operator or a small fantasy contest operator. The applicant shall be the individual or entity that is responsible for the financial and contractual obligations of the fantasy contest provider.(3) "Beginner player," as used in section 44-30-1607(1)(h), C.R.S., means any fantasy contest patron who has entered fewer than fifty-one contests offered by a single fantasy contest provider and who does not meet the definition of highly experienced player by virtue of having won more than three fantasy contest prizes of $1,000 or more from that single fantasy contest provider. (4) "Cash equivalent" means an electronic funds transfer, credit card, debit card, check, wire transfer, crypto currency, winnings, promotional or bonus credit, and any other form of payment as approved by the Division.(5) "Director" means the Director of the Division of Gaming or the Director's designee.(6) "Division" means the Division of Gaming in the Department of Revenue.(7) "Entry fee" means cash or a cash equivalent that is required to be paid by a fantasy contest patron to a fantasy contest provider in order to participate in a fantasy contest.(8) "Fantasy contest provider" means both a fantasy contest operator licensee and a small fantasy contest operator registrant, as well as their employees and agents, unless specifically mentioned.(9) "Highly experienced player," as used in section 44-30-1607(1)(h), C.R.S., means any fantasy contest patron who has: (a) entered more than 1,000 contests offered by a single fantasy contest provider; or (b) has won more than three fantasy contest prizes valued at $1,000 or more from that single fantasy contest provider. Once a fantasy contest patron is classified as highly-experienced player, the patron will remain classified as such. (10) "Inactive patron account" means a patron's account where the patron has not paid an entry fee for a fantasy contest, agreed to pay an entry fee for a fantasy contest, or made a monetary deposit to the patron's account within the past 365 days, but the patron has logged into the account within the last three (3) years calculated from the patron's last log-in date.(11) "Internal controls" means the minimum level of operational controls developed by a fantasy contest provider to ensure the integrity of fantasy contests.(12) "Prize," as used in Article 30 of Title 44, C.R.S., means anything of monetary value, including but not limited to, money, cash equivalents, merchandise, or admission to another contest in which a prize may be awarded.(13) "Script," as used in section 44-30-1607(1)(i), C.R.S., means commands that a fantasy contest-related computer program can execute that are created by fantasy contest patrons (or by third parties for the use of fantasy contest patrons to automate processes in a fantasy contest.(14)(a) "Sporting event" means: (i) Any individual or team sport or athletic event in which the outcome is not determined solely by chance, whether amateur or professional, including an Olympic or international sport or athletic event and any collegiate sports event;(ii) Any portion of a sport or athletic event listed in subsection (13)(a) of this section;(iii) The individual performance of athletes in a sports event or combination of sports events;(iv) Any sanctioned motorsport as authorized by the Division; (v) Professional electronic sports or video games sanctioned by a sports governing body as an electronic competition; and(vi) Any other sports event or combination of sports events as authorized by the Division.(b) "Prohibited Sporting Event" includes high school or youth sports. (15) "Utilization of statistics" means the method or formula in which fantasy points are accumulated based on the statistical results of the performance of athletes in sporting events.1.3Authorized fantasy contests.Fantasy contests offered pursuant to Part 16, Article 30 of Title 44, C.R.S., shall comply with all of the following requirements:
(1) Fantasy contests must require an entry fee, offer a prize(s) to the patron(s), and have the winning outcome based on the utilization of statistics from multiple athletes.(2) Fantasy contests are contests where patrons compete against other patrons. Fantasy contests where patrons compete against fantasy contest providers are prohibited.(3) Fantasy contests must include the following:(a) The selection of a minimum of two athletes or positions, or the utilization of statistics from a minimum of two athletes or positions.(b) The outcome of the contests must be based on adding together the accumulated statistical results from at least two athletes or positions.(4) Fantasy contests may be of any duration but must specify a beginning and end.(5) The winning outcome of a fantasy contest cannot be based on the score, point spread, or any performance of any single actual sports team or combination of the teams.(6) Fantasy contests that are free to all participants and do not require an entry fee are not regulated as fantasy contests.46 CR 24, December 25, 2023, effective 1/14/2024