SB270 Alabama 2017 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2017

Title

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

Summary

SB270 creates the Fantasy Contests Act to regulate fantasy contest operators in Alabama with registration, consumer protections, audits, and penalties, while exempting fantasy contests from gambling laws.

What This Bill Does

It requires fantasy contest operators to register with the Alabama Attorney General to offer entry-fee contests in the state, with a possible temporary registration for operators who were active before a certain date. Operators must implement consumer protection procedures (such as age verification, protection of confidential information, and prize disclosure) and follow restrictions on contest types and participant eligibility. The act requires annual independent audits and submission of audit results to the Attorney General, imposes civil penalties for violations, and prohibits targeted advertising to minors. It also states that fantasy contests are not gambling under state law and sets an effective date for the act.

Who It Affects

• Fantasy contest operators: must register with the Attorney General, pay initial and renewal fees based on prior 12-month gross revenues, implement required consumer protections, undergo annual audits, and can be penalized for violations.
• Fantasy contest players and Alabama residents who participate: gain consumer protections (age verification, disclosure of prizes, opt-out options, and funds protection) and are protected from certain advertising practices; also, operators are restricted from certain actions that could affect players or enable unfair play.

Key Provisions

• Establishes the Fantasy Contests Act and defines key terms (fantasy contest, operator, player, entry fee, gross revenues, location percentage, regulator).
• Requires registration with the Office of the Attorney General to offer entry-fee fantasy contests in Alabama; temporary registration may be available for pre-existing operators.
• Initial and annual registration fees are based on last 12 months' gross fantasy contest revenues, with a tiered fee structure (e.g., higher revenues pay higher fees).
• Registration is confidential; the Attorney General cannot impose rules limiting individual contest rules or platform details.
• Operators must implement consumer protection procedures: prevent employees and their households from unfair participation, protect confidential information, verify players' age (19+), prohibit certain types of contests (e.g., based on collegiate/high school events), require prize disclosure, limit entries, and segregate or reserve player funds.
• Require third-party annual audits to ensure compliance, with audit results submitted to the Attorney General.
• Prohibit targeting minors in advertising and require clear disclosure of prizes offered prior to contests.
• Impose civil penalties of up to $1,000 per violation, up to $5,000 for violations arising from the same transaction, with penalties going to the state.
• Fantasy contests are exempt from Alabama's general gambling prohibition; article 2 of Chapter 12 Title 13A does not apply to fantasy contests.
• Registration is transferable; acts become effective on the first day of the third month after passage.

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