A new Nebraska bill that was recently enacted will require a surety bond of businesses who are registered to operate fantasy contests.
Details on the New Requirement
The new bill, titled NE L 538, creates the Fantasy Contests Act to authorize, register and potentially allow bonding of reserves for any “online fantasy or simulated game or contest with an entry fee required for participation … in which … winning outcomes reflect the relative knowledge and skill … of players.”
The amendment would require such registered operators to segregate player funds from operational funds or maintain a reserve that exceeds the amount of player funds on deposit, which reserve may not be used for operational activities.
The reserve funds may be in the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond, or any combination thereof, in the amount that must exceed the total balances of the accounts of all fantasy contest players.
How to Apply for a Surety Bond
If you find that you must obtain this surety bond, you’ll need to contact a bond provider who is licensed to to business in Nebraska. JW Surety Bonds is licensed nationwide, so please apply for a free quote online, or feel free to reach out to us if you’d like assistance with obtaining this bond.