SB28 Alabama 2017 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2017

Title

Fantasy Sports Contests Act, creation of, operation of fantasy sports contests auth., licensure requirements, administered by Secretary of State, Fantasy Sports Fund, created

Summary

SB28 would create the Fantasy Sports Contests Act to regulate fantasy and simulated sports contests in Alabama, including licensing, registration, and consumer protections, overseen by the Secretary of State.

What This Bill Does

It creates a state framework to regulate fantasy sports contests. Operators must register with the Secretary of State, pay fees, and obtain a license; the Secretary can approve or deny registrations and enforce the rules. The act requires consumer protection measures, audits, records, and a dedicated Fantasy Sports Fund funded by fees. It also provides protections for players, such as age verification, fund segregation, prompt prize payout, and prohibitions on unfair practices, and it exempts fantasy sports from gambling penalties.

Who It Affects

• Fantasy sports contest operators: must register with the Secretary of State, pay application/renewal fees, post a $1,000,000 surety bond, maintain records, undergo background checks, and comply with audits and reporting.
• Fantasy sports contest participants (players) in Alabama: receive consumer protections (e.g., age verification, prize distribution rules, fund segregation), have winnings reported for state tax purposes, and are protected by rules against unfair practices and confidential information handling.

Key Provisions

• Establishes the Fantasy Sports Contests Act with defined terms (e.g., fantasy sports contest, operator, participant, entry fee, prize, auto draft).
• Requires operators to register with the Secretary of State to conduct contests in Alabama; sets initial application and renewal fees and deposits these fees into the Fantasy Sports Fund; allows additional licensing-related fees.
• Mandates a $1,000,000 surety bond, background checks, and moral character requirements for operators; prohibits registration for individuals with certain felonies.
• Imposes comprehensive operational safeguards (identity/location verification, protection of confidential information, prevention of account sharing, age verification, opt-out options, truthful advertising, disclosure of entry limits, anti-script usage, prompt prize distribution, and timely return of funds).
• Requires segregation of participant funds, maintains a reserve, and mandates annual independent audits reported to the Secretary of State; requires good standing with the Department of Revenue and detailed annual reporting of Alabama activity.
• Gives the Secretary of State enforcement powers (licensing, investigations, subpoenas, license suspensions/revocations, and coordination with law enforcement); directs reporting of winnings to the Department of Revenue.
• Creates the Fantasy Sports Fund to collect fees, pays administration costs from the fund, and directs remaining funds back to the General Fund at fiscal year end.
• Allows the Secretary of State to adopt rules, maintain a licensing registry, and exempt compliant contests from certain criminal penalties; clarifies the act does not apply Article 2 of Chapter 12, Title 13A, and includes constitutional exemptions related to local expenditures.
• Effective date set to the first day of the third month after passage and governor approval.

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