A. Except as otherwise provided in this section, a person may not offer fantasy sports contests in this state unless the person is licensed by the department as a fantasy sports contest operator.
B. An individual may offer one or more fantasy sports contests if all of the following apply:
1. The fantasy sports contests are not made available to the general public.
2. Each of the fantasy sports contests is limited to not more than fifteen total fantasy sports contest players.
3. The individual collects not more than $10,000 in total entry fees for all fantasy sports contests offered in a calendar year, at least ninety-five percent of which are awarded to the fantasy sports contest players.
C. An Indian tribe that lawfully conducts class III gaming pursuant to a tribal-state gaming compact with this state, directly or through a third-party operator, may offer and conduct fantasy sports contests without applying for or holding a license pursuant to this section if all activities of the fantasy sports contest occur within the boundary of its Indian lands and the Indian tribe complies with any regulations that are included in the compact or its appendices regarding fantasy sports contests.
D. To ensure the integrity of fantasy sports contests, the department has jurisdiction over each person involved in conducting a fantasy sports contest. The department may adopt rules related to conducting fantasy sports contests, including rules prescribing penalties for violating this chapter or any rules adopted under this chapter.
E. Every applicant for licensure shall submit a completed application, along with any required information, to the department. The department shall determine the form and content of the application. Each application shall be accompanied by the applicant's current photograph and the fee required by the department. The applicant must also submit a full set of fingerprints to the department for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.
F. The information required by the department shall include documentation of all of the following:
1. The name of the applicant.
2. The location of the applicant's principal place of business.
3. The applicant's telephone number.
4. The applicant's social security number or, if applicable, the applicant's federal tax identification number.
5. The name and address of each individual that holds a ten percent or more ownership interest in the applicant or in shares of the applicant.
6. The applicant's criminal record, if any, or if the applicant is a business entity, on request, any criminal record of an individual who is a director, officer or key employee of, or any individual who has a ten percent or more ownership interest in, the applicant.
7. Any ownership interest that a director, officer, key employee or individual owner of ten percent or more of the applicant holds in a person that is or was a fantasy sports contest operator or similar entity in any jurisdiction.
8. An identification of any business, including, if applicable, the state of incorporation or registration, in which an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant, has an equity interest of five percent or more.
9. Whether an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant has ever applied for or been granted any license, registration or certificate issued by a licensing authority in this state or any other jurisdiction for a gaming activity.
10. Whether an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant has filed or been served with a complaint or other notice filed by a public body regarding the delinquency in payment of or dispute over filings concerning the payment of any tax required under federal, state or local law, including the amount of tax, the type of tax, the taxing agency and the time periods involved.
11. A description of any physical facility operated by the applicant in this state, the employees who work at the facility and the nature of the business conducted at the facility.
12. Information sufficient to show, as determined by the department, that the applicant can meet the requirements of procedures submitted by the applicant under section 5-1203 and under any rules adopted under this chapter.
G. The department may require licensure of a holding company, a management company or any other person it considers sufficiently connected to the fantasy sports contest operator if that licensure is necessary to preserve the integrity of fantasy sports contests and protect fantasy sports contest players.
H. A license issued under this section is valid for two years. The department shall renew a license biennially if the applicant demonstrates continued eligibility for licensure under this chapter and pays the renewal fee. Notwithstanding this subsection, the department may investigate a licensee at any time the department determines it is necessary to ensure that the licensee remains in compliance with this chapter and the rules adopted pursuant to this chapter.
I. The department shall establish the initial license fee and the license renewal fee. The department may assess investigative costs if the cost of a licensure investigation exceeds the amount of the initial license or renewal fee.
J. On receipt of a completed application and the required fee, the department shall conduct the necessary background investigation to determine if the applicant meets the qualifications for licensure. On completion of the necessary background investigation, the department shall either issue a license or deny the application. If the application for licensure is denied, a statement setting forth the grounds for denial shall be forwarded to the applicant together with all other documents relied on by the department, to the extent allowed by law.