A.R.S. tit. 5 ch. 10 — Arizona Revised Statutes Title 5 Chapter 10 — Fantasy Sports Contests

5-1201. Definitions In this chapter, unless the context otherwise requires: 1. "Applicant" means any person that has applied for a license as a fantasy sports contest operator or that has been approved for any act related to fantasy sports contests. 2. "Application" means a request to issue a license as a fantasy sports contest operator or to approve any act related to fantasy sports contests. 3. "Athletic event": (a) Means a real-world professional, collegiate or nationally recognized sports game, contest or competition that involves the physical exertion and skill of the participating individual athletes who are each physically present at the location in which the sports game, contest or competition occurs, and the outcome of the sports game, contest or competition is directly dependent on the performance of the participating athletes. (b) Includes events involving motor vehicles. 4. "Department" means the department of gaming. 5. "Entry fee" means cash or cash equivalent that is paid by a participant to a fantasy sports contest operator to participate in a fantasy sports contest. 6. "Fantasy sports contest" means a simulated game or contest that is offered to the public with an entry fee and that meets all of the following conditions: (a) No fantasy sports contest team is composed of the entire roster of a real-world sports team. (b) No fantasy sports contest team is composed entirely of individual athletes who are members of the same real-world sports team. (c) Each prize or award or the value of all prizes or awards offered to winning fantasy sports contest players is made known to the fantasy sports contest players in advance of the fantasy sports contest. (d) Each winning outcome reflects the relative knowledge and skill of the fantasy sports contest players and is determined by the aggregated statistical results of the performance of multiple individual athletes or participants selected by the fantasy sports contest player to form the fantasy sports contest team, whose individual performances in the fantasy sports contest directly correspond with the actual performance of those athletes or participants in the athletic events in which those individual athletes or participants participated. (e) A winning outcome is not based on randomized or historical events or on the score, point spread or performance in an athletic event of a single real-world sports team, a single athlete or any combination of real-world sports teams. (f) The fantasy sports contest does not constitute or involve and is not based on any of the following: (i) Racing that involves animals. (ii) A game or contest ordinarily offered by a horse track or casino for money, credit or any representative of value, including any races, games or contests that involve horses or that are played with cards or dice. (iii) A slot machine or other mechanical, electromechanical or electronic device, equipment or machine. (iv) Poker, blackjack, faro, monte, keno, bingo, fan-tan, twenty-one, seven and a half, klondike, craps, chuck-a-luck, Chinese chuck-a-luck, wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingue, roulette or other banking or percentage games. (v) Any other game or device that is authorized or that is not authorized by this state. (vi) A high school or youth sporting event or any event that is not an athletic event. (vii) A contest that involves or results in betting on a race, a game, a contest or a sport that constitutes event wagering as defined in section 5-1301. 7. "Fantasy sports contest adjusted revenues" means the amount equal to the total of all entry fees that a fantasy sports contest operator collects from all fantasy sports contest players minus the total of all sums paid out as prizes or awards to all fantasy sports contest players, multiplied by the in-state percentage. 8. "Fantasy sports contest operator" or "operator" means a person that is engaged in the business of professionally conducting paid fantasy sports contests for cash or other prizes or awards for members of the general public that requires cash or cash equivalent as an entry fee to be paid by a member of the general public who participates in a paid fantasy sports contest. 9. "Fantasy sports contest platform" means the hardware, software, firmware, communications technology or other equipment, including operator procedures implemented to allow player participation in digital or online fantasy sports contests, and if supported, the corresponding equipment related to the display of the outcomes, and other similar information necessary to facilitate player participation in which a player is provided with the means to establish a player account and the fantasy sports contest operator is provided with the means to review player accounts, suspend fantasy sports contests, generate various financial transaction and account reports, input outcomes for fantasy sports contests and set any configurable parameters. 10. "Fantasy sports contest player" or "player" means an individual who participates in a fantasy sports contest offered by a fantasy sports contest operator. 11. "Fantasy sports contest team" means the simulated team composed of multiple individual athletes, each of whom is a member of a real-world sports team that a fantasy sports contest player selects to compete in a fantasy sports contest. 12. "Highly experienced player" means a fantasy sports contest player who has done at least one of the following: (a) Entered more than one thousand fantasy sports contests offered by a single fantasy sports contest operator. (b) Won more than three prizes or awards valued at $1,000 each or more from a single fantasy sports contest operator. 13. "Holding company" means a corporation, firm, partnership, limited partnership, limited liability company, trust or other form of business organization that is not an individual and that directly or indirectly does either of the following: (a) Holds an ownership interest of ten percent or more, as determined by the holding company's board, in a fantasy sports contest operator. (b) Holds voting rights with the power to vote ten percent or more of the outstanding voting rights of a fantasy sports contest operator. 14. "In-state percentage" means for each fantasy sports contest, the percentage, rounded to the nearest tenth of a percent, equal to the total entry fees collected from all in-state participants divided by the total entry fees collected from all participants in the fantasy sports contest, unless otherwise prescribed by the department. 15. "Key employee" means an employee of a fantasy sports contest operator who has the power to exercise significant influence over decisions concerning the fantasy sports contest operator. 16. "License" means an approval that is issued by the department to any person or entity to be involved in a fantasy sports operation. 17. "Management company" means a person retained by a fantasy sports contest operator to manage a fantasy sports contest platform and provide general administration and other operational services. 18. "Person" means an individual, partnership, corporation, association, limited liability company, federally recognized Indian tribe or other legal entity. 19. "Player account" means an account that is established by a patron for the purpose of participating in fantasy sports contests, including deposits, withdrawals, entry fees and payouts. 20. "Prize or award" means anything of value or any amount of cash or cash equivalents. 21. "Protected information" means information related to playing fantasy sports contests by a fantasy sports contest player that is not readily available to the general public and that is obtained as a result of a person's employment in relation to a fantasy sports contest. 22. "Script" means a list of commands that a fantasy contest-related computer program can execute and that is created by a fantasy sports contest player or by a third party for a fantasy sports contest player to automate processes on a fantasy sports contest platform. 5-1202. Fantasy sports contests; exceptions; rules; licensure 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. 5-1203. Prohibited employees; procedures and controls A. The fantasy sports contest operator may not employ an individual and, if already employed, shall terminate an employee who is identified through regulations issued by the department if the individual meets any of the following criteria: 1. Has been convicted of any gaming offense. 2. Has been convicted of a felony in the seven years before submission of the employment application unless that felony has been set aside. 3. Has ever been convicted of a felony related to extortion, burglary, larceny, bribery, embezzlement, robbery, racketeering, money laundering, forgery, fraud, murder, voluntary manslaughter or a sexual offense that requires the individual to register pursuant to section 13-3821. 4. Has knowingly and wilfully provided materially important false statements or information or omitted materially important information on the individual's employment application or background questionnaire. 5. Is an individual whose prior activities, criminal record, if any, or reputation, habits and associations pose a threat to the public interest or to the effective regulation and control of gaming or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in conducting gaming or carrying on the business and financial arrangements incidental to gaming. B. As a condition of licensure, a fantasy sports contest operator must submit to and receive approval from the department for commercially reasonable procedures and internal controls intended to do all of the following: 1. Prevent the fantasy sports contest operator or its owners, directors, officers and employees and any relative of any of these individuals living in the same household from participating in a fantasy sports contest offered to the public. 2. Prevent the employees or agents of the fantasy sports contest operator from sharing protected information with third parties unless the protected information is otherwise made publicly available. 3. Prevent participants and officials in an athletic event from participating in a fantasy sports contest that is based on the athletic event. 4. Establish the number of entries a single fantasy sports contest player may enter in a single fantasy sports contest and take reasonable steps to prevent fantasy sports contest players from submitting more than the allowable number of entries. 5. Identify each highly experienced player by a symbol attached to the highly experienced player's username. 6. Offer some fantasy sports contests that are open only to players other than highly experienced players. 7. Either of the following: (a) Segregate the deposits in the fantasy sports contest players' accounts from operational money. (b) Maintain a reserve in the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond or a combination of these, the aggregate amount of which exceeds the total dollar value amount of deposits in the fantasy sports contest players' accounts. The reserve may not be used for operational activities. 8. Ensure compliance with the applicable state and federal requirements to protect the privacy and online security of a fantasy sports contest player and the fantasy sports contest player's account. 9. Otherwise ensure the integrity of fantasy sports contests. C. A licensed fantasy sports contest operator shall comply with the procedures and internal controls that are submitted to and approved by the department under subsection B of this section. A licensed fantasy sports contest operator may make technical adjustments to its procedures and internal controls if the adjustments are not material and it notifies the department within twenty-one days of the changes becoming effective and continues to meet or exceed the standards required by this chapter and any rules adopted by the department. D. Procedures submitted to the department under subsection B of this section are confidential and privileged and are not subject to disclosure under title 39, chapter 1, article 2. 5-1204. Financial responsibility On or before July 1 of each year, a licensed fantasy sports contest operator shall contract with a certified public accountant to perform an independent audit in accordance with generally accepted accounting principles of the financial condition of the licensed fantasy sports contest operator's total operation for the previous fiscal year and to ensure compliance with this chapter and for any other purpose as prescribed by rule. Not later than one hundred eighty days after the end of the fantasy sports contest operator's fiscal year, a licensed fantasy sports contest operator shall submit the audit results under this section to the department. The results of an audit submitted to the department under this section are confidential and privileged and are not subject to disclosure as provided in title 39, chapter 1, article 2. 5-1205. Prohibitions; exception A. A fantasy sports contest operator shall prohibit an individual who is under twenty-one years of age from participating in a fantasy sports contest. B. A licensed fantasy sports contest operator may not do any of the following: 1. Allow the use of a script that provides a fantasy sports contest player with an unfair competitive advantage. A script made readily available to all fantasy sports contest players does not provide a fantasy sports contest player with an unfair competitive advantage and may not be determined otherwise. 2. Use false, deceptive or misleading advertising or advertising that is not based on fact. 3. Target, in advertising or promotions, either of the following: (a) Individuals who have restricted themselves from entering a fantasy sports contest under the procedures established by the department pursuant to section 5-1206. (b) Individuals who are under twenty-one years of age. C. A fantasy sports contest may not be offered on, at or from any of the following: 1. A kiosk or machine open to public use and physically located in a retail business location, bar, restaurant or other commercial establishment. 2. A kiosk or machine open to public use and physically located in a place of public accommodation, except that a fraternal organization or veterans' organization as defined in section 5-401 or a licensed racetrack may operate up to two kiosks for the sole purpose of offering fantasy sports. D. This section does not apply to a federally recognized Indian tribe operating under its tribal-state gaming compact and any amendments. 5-1206. Problem gambling; self-exclusion list; program; liabilities A. A fantasy sports contest operator shall develop a procedure to inform fantasy sports contest players that help is available if an individual has a problem with gambling and, at a minimum, provide the statewide toll-free helpline telephone number, text message and website information established by the department. B. The department and the fantasy sports contest operator shall comply with the following requirements to allow problem gamblers to voluntarily exclude themselves from fantasy sports contests statewide: 1. The department shall establish a list of persons who acknowledge, in a manner to be established by rule, that they have a compulsive play problem and voluntarily seek to exclude themselves from fantasy sports contests statewide. The department shall establish procedures for the placement on and removal from the list of self-excluded persons. Only a person seeking voluntary self-exclusion shall be allowed to include the person's name on the self-exclusion list of the department. 2. The fantasy sports contest operator shall establish procedures for advising persons who inquire about self-exclusion and offer self-exclusion application forms provided by the department to those persons when requested. 3. The department shall compile identifying information concerning self-excluded persons. Such information shall contain, at a minimum, the full name and any aliases of the person, a photograph of the person, the social security or driver's license number of the person and the current physical and electronic contact information, including mailing address, of the person. 4. The department, on a weekly basis, shall provide the compiled information to fantasy sports contest operators. Fantasy sports contest operators shall treat the information received from the department under this section as confidential, and the information may not be disclosed except to vendors approved by the department for purposes of complying with this section, appropriate law enforcement agencies if needed in conducting an official investigation, or unless ordered by a court of competent jurisdiction. 5. A fantasy sports contest operator shall check the most recent self-excluded persons list provided by the department before creating a player account for any self-excluded person. A fantasy sports contest operator shall revoke a player account and remove all self-excluded persons from all marketing lists of the fantasy sports contest operator. 6. A fantasy sports contest operator shall take reasonable steps to ensure that persons on the department's list of self-excluded persons are denied access to all fantasy sports contests. 7. A fantasy sports contest operator shall take reasonable steps to identify self-excluded persons. 8. If a self-excluded person participates in a fantasy sports contest, the fantasy sports contest operator shall report to the department, at a minimum, the name of the self-excluded person, the date of participation, the amount or value of any monies, prizes or awards forfeited, if any, and any other action taken. The report shall be provided to the department within twenty-four hours of discovery. C. A fantasy sports contest operator may not pay any prize or award to a person who is on the department's self-exclusion list. Any prize or award won by a person on the self-exclusion list shall be forfeited and shall be donated by the fantasy sports contest operator to the department's division of problem gambling on a quarterly basis by the twenty-fifth day of the following month. D. Notwithstanding any other provision of this chapter, the department's list of self-excluded persons is not open to public inspection. E. A fantasy sports contest operator shall develop and maintain a program to mitigate compulsive play and curtail compulsive play, which may be in conjunction with the department. 5-1207. Department of gaming; authority The department shall adopt rules to implement this chapter as provided in title 41, chapter 6, including rules that do all of the following: 1. Require a fantasy sports contest operator to implement commercially reasonable procedures to prohibit access to both of the following: (a) Individuals who request to restrict themselves from playing fantasy sports contests. (b) Individuals who are under twenty-one years of age. 2. Prescribe requirements related to beginning players and highly experienced players. 3. Suspend the account of a fantasy sports contest player who violates this chapter or a rule adopted under this chapter. 4. Provide a fantasy sports contest player with access to information on playing responsibly and how to ask for assistance for compulsive play behavior. 5. Require an applicant for a fantasy sports contest operator license to designate at least one key employee as a condition of obtaining a license. 6. Include any other rule the department determines is necessary to ensure the integrity of fantasy sports contests. 5-1208. Requirements A. After a fantasy sports contest operator is licensed, the fantasy sports contest operator shall report any change to the information regarding ownership included in its application with the department within thirty days after the change is effective. The fantasy sports contest operator's license shall remain valid unless the department determines that the fantasy sports contest operator is no longer qualified to maintain the license due to the change. B. A licensed fantasy sports contest operator shall retain and maintain in a place secure from theft, loss or destruction all of the records required to be maintained under this chapter and the rules adopted under this chapter for at least three years after the date the record is created. C. A licensed fantasy sports contest operator shall organize all records under subsections A and B of this section in a manner that enables the licensed fantasy sports contest operator to provide the department with the records. D. Information obtained under this section is confidential and privileged and is not subject to disclosure as provided in title 39, chapter 1, article 2. E. If a fantasy sports contest operator is required to file a form 1099-Misc or other substantially equivalent form with the United States internal revenue service for a person who is identified by the Arizona administrative office of the courts, the department of economic security division of child support enforcement, the department of economic security supplemental nutrition assistance program and assistance overpayment or the Arizona health care cost containment system administration as owing an obligation, the fantasy sports contest operator shall withhold from the person's account the amount of obligations owed at the time the form 1099-Misc or a substantially equivalent form is issued, if the fantasy sports operator has been notified by this state of the obligation. At that time, the fantasy sports contest operator shall transmit the amount withheld for obligations to the department of gaming and shall also transmit any information requested by the department of gaming. The department of gaming shall provide information to the fantasy sports contest operator of persons with outstanding obligations. If the identified person is also self-excluded, tax liabilities and setoff obligations shall be satisfied before any monies are donated to the department of gaming division of problem gambling pursuant to section 5-1206. If the identified person has multiple liabilities, those liabilities shall be satisfied in the following order: 1. Child support enforcement. 2. Supplemental nutrition assistance program and assistance overpayment. 3. The courts. 4. The Arizona health care cost containment system administration. 5-1209. Revocation, suspension or denial of license; grounds; definitions A. The department may revoke, suspend or deny a license if an applicant or licensee meets any of the following criteria: 1. Violates, fails or refuses to comply with the provisions, requirements, conditions, limitations or duties imposed by law or rule, or if any such violation occurs on any fantasy sports contest platform operated by any such person or over which the person has substantial control. 2. Knowingly causes, aids, abets or conspires with another to cause any person to violate any of the laws of this state or the rules of the department. 3. Obtains a license by fraud, misrepresentation, concealment or through inadvertence or mistake. 4. Is convicted of or forfeited bond on a charge of or pleads guilty to: (a) Forgery, larceny, extortion or conspiracy to defraud. (b) Wilful failure to make required payment or reports to any tribal, state or federal governmental agency, filing false reports with any tribal, state or federal governmental agency or any similar offense or offenses. (c) Bribing or otherwise unlawfully influencing a public official of this state or any other state or jurisdiction. (d) Any crime, whether a felony or misdemeanor, involving any gaming activity, physical harm to an individual or moral turpitude. 5. Makes a misrepresentation of or fails to disclose a material fact to the department. 6. Fails to prove, by clear and convincing evidence, that the person is qualified for licensure. 7. Is subject to current prosecution or pending charges or a conviction that is under appeal for any of the offenses included in this subsection. At the request of an applicant for an original license, the department may defer decision on the application during the pendency of the prosecution or appeal. 8. Has had a gaming license issued by any jurisdiction in the United States revoked or denied. 9. Demonstrates a wilful disregard for compliance with gaming regulatory authority in any jurisdiction, including suspension, revocation or denial of an application for a license or forfeiture of a license. 10. Has pursued or is pursuing economic gain in an occupational manner or context in violation of the criminal laws of any state if the pursuit creates probable cause to believe that the person's participation in gaming or related activities would be detrimental to the proper operation of authorized gaming or a related activity in this state. 11. Is a career offender or a member of a career offender organization or an associate of a career offender or career offender organization thereby establishing probable cause to believe that the association is of such a nature as to be detrimental to the proper operation of authorized gaming or related activities in this state. 12. Is a person whose prior activities, criminal record, if any, habits and associations pose a threat to the public interest of this state or to the effective regulation and control of fantasy sports contests, or creates or enhances the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of fantasy sports contests, or the carrying on of the business and financial arrangements incidental thereto. 13. Fails to provide any information requested by the department within seven days of the request for the information. B. The department, pursuant to the laws of this state, may summarily suspend a license issued pursuant to this chapter if the continued licensure of a person constitutes an immediate threat to the public health, safety or welfare. C. Any applicant for licensure agrees by making such application to be subject to state jurisdiction to the extent necessary to determine the applicant's qualification to hold such license, including all necessary administrative procedures, hearings and appeals pursuant to title 41, chapter 6 and the department's rules. D. An applicant for licensure may not withdraw an application without the department's written permission. The department may not unreasonably withhold permission to withdraw an application. E. For the purposes of this section: 1. "Career offender" means any individual who behaves in an occupational manner or context for the purposes of economic gain by violating federal law or the laws and public policy of this state. 2. "Career offender organization" means any group of individuals who operate together as career offenders. 3. "Occupational manner or context" means the systematic planning, administration, management or execution of an activity for financial gain. 5-1210. Violations; classification; penalties A. A person may not do any of the following: 1. Except as otherwise provided in this chapter, offer a fantasy sports contest in this state unless the person is licensed by the department. 2. Knowingly make a false statement on an application for a license under this chapter. 3. Knowingly provide false testimony to the department or any authorized representative of the department. B. The department may not issue a license under this chapter to a person that violates subsection A of this section. C. A person that violates subsection A, paragraph 1 of this section is guilty of a crime as follows: 1. For the first or second violation, the person is guilty of a class 3 misdemeanor. 2. For a third or subsequent violation, the person is guilty of a class 1 misdemeanor. D. The department may issue a cease and desist order and obtain injunctive relief against a person that violates this chapter. E. The department may impose a civil penalty of not more than $10,000 for a violation of this chapter, a rule adopted under this chapter or an order of the department. A civil penalty imposed under this section is payable to this state and may be collected in a civil action brought by the department. F. The department may suspend, revoke or restrict the license of a fantasy sports contest operator that violates this chapter, a rule adopted under this chapter or an order of the department. 5-1211. Fees; penalty A. The department shall establish a fee for the privilege of operating fantasy sports contests. In determining the fee, the department shall consider the highest percentage of revenue share that an Indian tribe pays to this state pursuant to the tribal-state gaming compacts and any amendments. The fee may not exceed ten percent of the fantasy sports contest operator's adjusted revenues. A fantasy sports contest operator shall report to the department and pay the fee from its monthly fantasy sports contest adjusted revenues, on a form and in the manner prescribed by the department. This subsection does not apply to an individual who offers a fantasy sports contest under section 5-1202, subsection B. B. The fee established pursuant to subsection A of this section is due and payable to the department by the twenty-fifth day of each month and shall be based on monthly fantasy sports contest adjusted revenue derived during the previous month. C. The department shall deposit, pursuant to sections 35-146 and 35-147, the fees collected pursuant to this section in the event wagering fund established by section 5-1318. D. A licensed fantasy sports contest operator who fails to remit to the department the fees required under this section is liable, in addition to any sanction or penalty imposed under this chapter, for the payment of a penalty of five percent per month up to a maximum of twenty-five percent of the amounts ultimately found to be due, to be recovered by the department. Penalties imposed and collected by the department under this subsection must be deposited in the event wagering fund established by section 5-1318. 5-1213. Conditional enactment; notice A. This chapter does not become effective unless and before each Indian tribe with a gaming facility in Pima county and each Indian tribe with a gaming facility in the Phoenix metropolitan area, as defined in the 2021 compact amendment, has entered into a 2021 gaming compact amendment and notice of the United States secretary of the interior's approval or approval by operation of law has been published in the federal register. B. The department shall notify the director of the Arizona legislative council in writing of the date on which the condition was met.