SB325 Alabama 2018 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2018

Title

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

Summary

SB 325 would create the Fantasy Contests Act to regulate fantasy contest operators in Alabama, requiring registration and consumer protections while exempting fantasy contests from the gambling prohibition.

What This Bill Does

Operators must register with the Alabama Attorney General before offering entry-fee contests in the state, with initial applications due within 180 days and grandfathering rules for pre-2017 operators. The act imposes consumer-protection requirements (age verification, confidentiality, self-exclusion, prize disclosure, and conflict-of-interest rules) and requires annual independent audits. It also clarifies that fantasy contests are not gambling or a lottery and notes that local-funding requirements are exempted under Amendment 621.

Who It Affects

• Fantasy contest operators: must register, pay registration fees, follow defined consumer-protection procedures, and undergo annual independent audits.
• Fantasy contest players: gain protections such as age verification, self-exclusion options, confidentiality safeguards, and clear disclosure of prizes and program rules.

Key Provisions

• Establishes the Fantasy Contests Act with definitions for terms like fantasy contest, operator, player, and entry fee.
• Requires registration of fantasy contest operators with the Office of the Attorney General before offering entry-fee contests; includes an initial registration period and grandfathering for earlier operators.
• Implements a registration fee structure (initial and annual renewal) based on number of active player accounts and operator history.
• Requires operators to implement consumer-protection procedures: prevent conflicts of interest, protect confidential information, verify age (19+), prohibit certain contests (e.g., based on collegiate/high school events), disclose prizes in advance, limit entries, and segregate or reserve player funds.
• Mandates annual independent audits by a CPA firm and submission of audit results to the Attorney General.
• Prohibits advertising that targets minors; classifies violations as deceptive trade practices; grants AG authority to adopt implementing rules.
• Affirms that fantasy contests are not gambling or a lottery, and notes that local-funding requirements do not apply due to constitutional exemptions; effective date is when the governor signs the bill.

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