HB354 Alabama 2017 Session

Summary

Primary Sponsor

Alan Boothe

Republican

Session

Regular Session 2017

Title

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

Summary

HB354 creates the Fantasy Contests Act to regulate fantasy contest operators in Alabama, requiring registration, consumer protections, and state oversight, while exempting fantasy contests from gambling laws.

What This Bill Does

It would require fantasy contest operators to register with the Attorney General to offer entry-fee contests in Alabama, with initial and renewal fees based on the number of active player accounts. Operators would pay a 6% annual regulatory assessment of gross fantasy contest revenues to the General Fund. It would require operators to implement consumer-protection procedures (conflict-of-interest safeguards, age verification, prize disclosure, self-exclusion, limits on entries, and segregation of player funds or reserves) and to commission an annual independent audit. The act defines key terms, gives the Attorney General authority to adopt rules, and makes violations a deceptive trade practice; it also explicitly exempts fantasy contests from Alabama’s gambling prohibition.

Who It Affects

• Fantasy contest operators offering entry-fee contests in Alabama — must register, pay fees, follow consumer protections, and be audited.
• Fantasy contest players in Alabama — receive consumer protections (age verification, prize disclosure, self-exclusion, funds protection) and are covered by enforcement provisions.

Key Provisions

• Registration required for fantasy contest operators; 180 days to provide applications; existing operators may continue after applying within 60 days.
• Initial registration fees: $85,000 for operators with 5,000+ active accounts; $5,000 for operators with fewer than 5,000; renewal fees annually.
• Annual regulatory assessment: 6% of gross fantasy contest revenues paid to the state General Fund.
• Operator consumer-protection duties: conflict-of-interest rules, age verification (19+), no contests based on collegiate/high school events, prize disclosure, restrict participation of employees/relatives, and prevent excessive entry submissions.
• Funds and audits: segregate player funds or hold reserves; contract for an independent annual audit by a CPA; audit results submitted to the AG within 270 days after fiscal year end.
• Advertising and participation restrictions: no targeting of minors; prohibit certain advertising and ensure contests are not based on single events or performances.
• Enforcement and scope: violations are treated as deceptive trade practices; AG can adopt implementing rules; act defines key terms (active player account, entry fee, etc.).
• Gambling exemption: fantasy contests are exempt from the state prohibition against gambling.
• Effective date: act becomes law immediately after governor's approval; includes constitutional expenditure language.

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 Contest