1. (1) persons under the age of 18;
2. (2) employees, officers, directors or direct or indirect owners of such licensee;
3. (3) any spouse, child, brother, sister or parent residing as a member of the same household in the principal place of abode of any employee, officer, director or direct or indirect owner of such licensee; and

4. (4) any person identified on a restricted list the commission provides.

   (b) Procedures to prevent prohibited play.

   A courier service shall submit for commission approval procedures to prevent prohibited players from placing a request for courier services through such licensee’s network. A courier service shall implement any changes to such procedures as the commission may direct at any time.

5. (1) Such plan shall include the following, in regard to prevention of play by a minor:

   1. (i) specification of parental controls procedures to allow parents and guardians to exclude persons under the age of 18 from placing a request for courier services through such licensee’s network. The licensee shall explain what information is made available about the specific steps a parent or guardian may take to implement parental controls, including the toll-free number that a licensee shall provide for individuals seeking help in establishing such parental controls;
   2. (ii) detailed explanation of the steps taken to prevent persons under the age of 18 from placing a request for courier services through such licensee’s network. The licensee shall explain what types of native or third-party age verification procedures are implemented to verify that each person registering for an account with such licensee is not under the age of 18;
   3. (iii) procedures used to identify and deactivate accounts created or used by persons under the age of 18 and to exclude such persons from all paid activity offered through such licensee’s network;
   4. (iv) verification that any account balance attributable to a person under the age of 18 shall be refunded, less any prizes already awarded, within no more than two business days of discovery that such account is attributable to such person. The licensee also shall explain how deposits will be refunded; and
   5. (v) procedures to ensure that persons under the age of 18 do not receive promotional materials that relate to a licensee’s network.

6. (2) Such plan shall include, in regard to verification of geolocation capabilities, procedures to ensure the network’s ability to prevent requests for courier services by players not physically present in the state of New York at the time of such request.

   (c) Required terms of use.

   A courier service shall specify in the terms of use applicable to such licensee’s network that each category of individuals identified in this section is prohibited from placing requests for courier services through such licensee’s network.

   (d) Operator liability for violations.

   A courier service shall be strictly liable for permitting any prohibited courier customer, as set forth in subdivision (a) of this section, to use such licensee’s network. The commission shall consider, however, before imposing any penalty or sanction upon a licensee for a violation of this section, other than a mandatory penalty set forth in subdivision (e) of this section, any circumstances that such licensee presents in writing to the commission as mitigating factors for the commission’s consideration, including, without limitation, good-faith reliance on false or misleading information provided by the prohibited person and good-faith compliance with appropriate internal controls designed to prevent play by a prohibited person.

   (e) Mandatory sanctions for allowing play by minors.

   The commission shall penalize a courier service found to have allowed a minor to use such licensee’s network as follows:

7. (1) for a first violation, a fine of $5,000;
8. (2) for a second violation within one year of a violation, a fine of $20,000;
9. (3) for a third violation within one year of a violation, a fine of $25,000; and
10. (4) for a fourth violation or subsequent violation within one year of a violation, a fine of $25,000 and such further action as the commission may deem appropriate, which may include, without limitation, the suspension or revocation of license.

(a) Participation prohibited.

A courier service shall prevent the following persons from opening an account or placing a request for courier services through such licensee’s network: