SB114 Alabama 2016 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2016

Title

Fantasy contests, regulation of, consumer protection measures by operators required, audits, civil penalties

Summary

This bill creates the Fantasy Contests Act to regulate paid fantasy contests in Alabama, protect players, require audits, and impose civil penalties while exempting these contests from gambling-related criminal penalties.

What This Bill Does

If passed, it would define key terms for fantasy contests, require operators to implement consumer protection procedures (including age verification, confidentiality, self-exclusion, and funds segregation), and mandate an annual independent audit with results submitted to the Attorney General. It would authorize civil penalties for violations and establish enforcement by the Attorney General. It would also exempt fantasy contests from criminal penalties tied to gambling and set an effective date for the law.

Who It Affects

• Fantasy contest operators (entities offering fantasy contests with entry fees and cash prizes) would must implement consumer protection procedures, undergo annual independent audits, segregate player funds, verify players' ages, restrict certain participation by staff and related individuals, allow self-exclusion, and could face civil penalties for violations.
• Fantasy contest players (participants) would gain protections such as age verification, confidentiality safeguards, self-exclusion options, and protection of participant funds, while still needing to follow contest rules and entry limits.

Key Provisions

• Creates the Fantasy Contests Act to regulate fantasy and simulated contests.
• Defines terms: confidential information, entry fee, fantasy contest, fantasy contest operator, and fantasy contest player.
• Operator obligations: prevent staff and household members from entering cash-prize contests; protect confidential information; prohibit operator participation in its own contests; verify players are at least 18; restrict participation by players and officials from certain stat-based contests; provide self-exclusion options; disclose maximum entries per player; segregate player funds and maintain a reserve.
• Annual independent audit: operators offering entry-fee contests must contract a third party to perform an audit and submit results to the Attorney General.
• Civil penalties: violations can incur up to $1,000 per violation, payable to the state and enforceable by the Attorney General.
• Enforcement: the Attorney General is authorized to enforce the act.
• Criminal penalties: fantasy contests are exempt from certain criminal penalties related to gambling activity.
• Effective date: law becomes effective on the first day of the third month after passage/approval.
• Not applicable: Section 4 clarifies that Article 2 of Chapter 12 of Title 13A does not apply to a fantasy contest.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Fantasy Contests