Legal Information for D1 Arena

Last Updated: December 2025

IMPORTANT LEGAL NOTICE: SKILL-BASED COMPETITION PLATFORM

D1 Arena is a skill-based esports competition platform. All tournaments and contests offered on this Platform are bona fide contests for the determination of skill as defined under Texas Penal Code §47.01. Outcomes are determined exclusively by participants skill, knowledge, strategy, and performance—not by chance, luck, or random elements.

Company Information

  • Platform Name: D1 Arena
  • Service Type: Skill-based esports competition and streaming platform
  • Jurisdiction: State of Texas, United States

Compliance with Texas Law - Skill-Based Competitions

D1 Arena operates in strict compliance with the laws and regulations of the State of Texas. Under Texas Penal Code §47.01, a "bet" does not include:

"...an offer of a prize, award, or compensation to the actual contestants in a bona fide contest for the determination of skill, speed, strength, or endurance..."

View Official Texas Statutes

How D1 Arena Qualifies as Skill-Based Competition

  • No Element of Chance: Tournament outcomes are determined solely by player performance, not by random number generators, dice rolls, card shuffles, or any chance-based mechanics.
  • Skill Determines Results: Winners are determined by measurable skills including reaction time, strategic decision-making, game knowledge, hand-eye coordination, teamwork, and tactical execution.
  • Fair Competition: All participants compete under identical conditions with equal opportunity to demonstrate their abilities.
  • Practice Improves Performance: Unlike games of chance, dedicated practice and skill development directly correlate to improved tournament results.
  • Bona Fide Contests: All competitions are legitimate contests where the most skilled participant or team wins based on demonstrated ability.

Identity Verification & Security Compliance

D1 Arena implements comprehensive identity verification and security measures to ensure platform integrity and regulatory compliance:

Two-Factor Authentication (2FA)

  • TOTP-Based Security: Time-based one-time passwords using industry-standard protocols
  • Required for Financial Features: 2FA must be enabled to access wallet, request payouts, or manage payment methods
  • Recovery Options: Secure recovery codes provided during setup for account recovery
  • Admin Requirement: All administrative accounts require mandatory 2FA

Identity Verification Process

  • Government ID Verification: Valid drivers license, passport, or state-issued ID required for wallet access
  • Biometric Matching: Selfie verification to confirm identity document ownership
  • Address Verification: Proof of address may be required for high-value transactions
  • Fraud Prevention: Multi-layered verification to prevent identity theft and account fraud

Why Verification is Required

  • Compliance with anti-money laundering (AML) regulations
  • Prevention of fraud and unauthorized transactions
  • IRS tax reporting requirements for payment processors
  • Protection of legitimate users from identity theft
  • Ensuring fair competition by preventing multi-accounting

Tax Compliance & IRS Requirements

D1 Arena complies with all applicable tax laws and IRS reporting requirements:

Payment Reporting

  • Form 1099-K: Issued to users meeting IRS reporting thresholds
  • W-9 Requirement: U.S. persons must provide valid W-9 before receiving payouts
  • W-8BEN Requirement: Non-U.S. persons must provide valid W-8BEN or W-8BEN-E
  • Backup Withholding: May apply if valid tax documentation is not provided

SSN/TIN Collection & Protection

  • Purpose: Collected solely for IRS tax reporting compliance
  • Encryption: Social Security Numbers encrypted using AES-256 encryption at rest
  • Limited Display: Only last 4 digits shown in user interface
  • Retention: Tax records retained for 7 years per IRS requirements
  • Access Control: Restricted to authorized personnel for tax reporting only

Data Security Standards

D1 Arena implements enterprise-grade security measures:

Encryption Standards

  • Data in Transit: TLS 1.3 encryption for all communications
  • Data at Rest: AES-256 encryption for sensitive financial data
  • Password Storage: Bcrypt hashing with appropriate cost factor
  • PIN Security: One-way hashing for wallet PINs

Access Controls

  • Role-Based Access: Principle of least privilege for all staff
  • Audit Logging: All access to PII and financial data logged
  • Regular Reviews: Periodic access reviews and security audits
  • Incident Response: Documented procedures for security incidents

Wallet Security

  • PIN Protection: 4-digit PIN required for all wallet operations
  • Lockout Policy: Temporary lockout after multiple failed PIN attempts
  • 2FA Requirement: Two-factor authentication required for wallet access
  • Transaction Limits: Daily and per-transaction limits for fraud prevention
  • Verification for Changes: Identity re-verification required to change payout methods

Membership Tiers & Fee Structure

D1 Arena offers three membership tiers with transparent pricing. All fees comply with Texas law and are NOT derived from prize pools:

Starter Membership (Free)

  • Supporter Subscription Revenue: Creators keep 75% (25% platform fee)
  • Tournament Entry Fee: 18% administrative fee
  • Included: 3 community tournaments/month, 3 teams (10 members each), 15-day VOD storage, emojis in chat

PRO Membership ($14.99/month)

  • Supporter Subscription Revenue: Creators keep 82% (18% platform fee)
  • Tournament Entry Fee: 14% administrative fee
  • Included: 15 community tournaments/month, 15 teams (25 members each), 90-day VOD storage, GIFs + emojis in chat, PRO badge

Ultimate Membership ($29.99/month)

  • Supporter Subscription Revenue: Creators keep 90% (10% platform fee)
  • Tournament Entry Fee: 10% administrative fee
  • Included: Unlimited community tournaments, unlimited teams (50 members each), 180-day VOD storage, ad-free viewing on all channels, priority tournament registration, ULTIMATE badge

Payout/Withdrawal Fees (All Tiers)

  • Withdrawal Processing: 5% + $0.50 per withdrawal
  • Payment Methods: PayPal or Stripe Connect (identity verification required)
  • Minimum Withdrawal: $10.00
  • Tax Forms Required: W-9 or W-8BEN must be on file before first withdrawal

Important: All platform fees support operational costs only. No portion of tournament prize pools is taken as profit by D1 Arena. All fees are transparently disclosed before registration or subscription.

Age Restrictions & Verification

  • Minimum Age: 13 years old to create an account
  • Ages 13-17: Parental consent required for paid tournaments. Cannot access wallet features, receive payouts, or submit tax information.
  • Ages 18+: Full access to all tournaments, prize competitions, and financial features (with identity verification)
  • Age Verification: Date of birth verified during registration; ID verification confirms legal age for financial features
  • Youth Tournament Compliance: Per Texas Penal Code §47.01, tournaments for minors cannot have paid entry fees or cash prizes.

User Conduct & Account Security

You agree to use the Platform only for lawful purposes. Prohibited behaviors include:

  • Harassing, threatening, or defaming other users
  • Posting obscene, offensive, or illegal content
  • Using automated systems without authorization
  • Impersonating another person or entity
  • Engaging in fraudulent activities, including cheating in tournaments
  • Submitting fraudulent identity documents or tax information
  • Sharing account credentials or 2FA codes
  • Attempting to bypass security measures or identity verification
  • Creating multiple accounts to circumvent limits or bans

Disclaimers

  • No Warranty: The Platform is provided "as is" without warranties. We do not guarantee uninterrupted or error-free service.
  • Liability Limitation: D1 Arena is not liable for indirect, incidental, special, consequential, or punitive damages resulting from Platform use.
  • Third-Party Content: We are not responsible for user-generated content or third-party services.
  • Security Responsibility: Users are responsible for enabling recommended security features (2FA) and protecting their credentials.

Dispute Resolution

  • Tournament Disputes: D1 Arena administrators make final decisions on match results and rule violations
  • Billing Disputes: Contact support within 30 days of the charge
  • Identity Verification Disputes: Appeals may be submitted with additional documentation
  • Legal Disputes: Governed by Texas law; disputes resolved in Texas courts

Contact Information

For questions regarding legal matters, identity verification, tax compliance, or security:

  • General Support: Contact Form
  • Legal Inquiries: legal@d1arena.com
  • Security Concerns: security@d1arena.com
  • Privacy/Data Requests: privacy@d1arena.com
  • Tax/Verification Support: support@d1arena.com

By using D1 Arena, you acknowledge that all contests are skill-based competitions where outcomes are determined by participant ability, not chance, in full compliance with Texas Penal Code §47.01. You also agree to comply with all identity verification, security, and tax compliance requirements.