Legislation has been
introduced in the US state of Colorado to license fantasy sports operators
and regulate the activity through the Office of Fantasy Contests.
House Bill 1404, the Fantasy Contests Act, is sponsored by House
Democratic leader Crisanta Duran and Republican Cole Wist, with a Senate
counterpart sponsored by Senator John Cooke and Senate President pro Tempore
The bill seeks
to ensure that all winning outcomes of fantasy sports contests reflect the
relative knowledge and skill of participants, with results determined
predominantly by accumulated statistical results based on athletes’
performances in professional sporting competitions. All university, college,
high school and youth sporting events will be excluded from fantasy
Any company wishing to
offer their services to Colorado residents must be licensed by the Office of
Fantasy Contests, with the bill effectively classing DFS as a form of gambling.
All contests must be conducted in licensed gaming establishments,
class B horse racing tracks and at licensed facilities in which pari-mutuel
The bill also states
that operators may not use any sort of device that replicates or qualifies
as limited gaming, and must contract a third party to perform an independent
audit of the business each year. Failure to comply with the new
regulations will result in a fine of up to $1,000 per offence.
As with legislation
put forward in other states, employees of fantasy sports operators and their
families are prohibited from entering cash contests, and information that
may influence the results of contests must be kept confidential.
Should the legislation
be passed it would come into force from July 1st.