HB361 Alabama 2019 Session

Summary

Primary Sponsor

Kyle South

Republican

Session

Regular Session 2019

Title

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

Summary

HB 361 creates a regulated framework for fantasy contests in Alabama, requiring operator registration, player protections, and a state tax, while clarifying these contests are not gambling or lotteries.

What This Bill Does

The act establishes the Fantasy Contests Act with definitions for fantasy contests, operators, and players; operators must register with the Attorney General and may be charged initial and annual fees. It imposes an annual tax on gross fantasy contest revenues and requires independent audits to ensure compliance. It requires operators to implement consumer protections (age checks, confidentiality, opt-out options, prize disclosure, and restrictions on minors and high school events) and to keep player funds segregated with a reserve. It also prohibits certain advertising practices and deems violations as deceptive trade practices, with the Attorney General empowered to issue rules.

Who It Affects

• Fantasy contest operators: must register with the Attorney General, pay registration and renewal fees, file annual audits, and follow consumer protection and funding rules.
• Fantasy contest players/consumers: gain protections such as age verification, opt-out options, prize disclosure, confidentiality safeguards, and bans on contests tied to high school/youth events; also are protected from deceptive practices.

Key Provisions

• Establishes the Fantasy Contests Act and defines terms such as fantasy contest, operator, player, entry fee, and gross revenues.
• Operators must register with the Office of the Attorney General before offering contests in Alabama; transitional provisions for operators who offered contests before a specified date.
• Registration fees: large operators (national gross revenues > $10,000,000) pay $85,000 initial plus $85,000 annual renewal; all others pay $1,000 initial plus $1,000 annual renewal.
• Annual tax on gross fantasy contest revenues (rate described in the act as six eight ten and one-half percent) paid to the State General Fund.
• Requires consumer protections: age verification; no participation by operators’ relatives; confidentiality protections; no contests based on high school/youth events; prize disclosure; limits on entries; funds segregation or reserve; annual independent audit by a CPA with results due to AG.
• Advertising restrictions: operators may not target minors; prohibitions on certain advertising practices.
• Violations are treated as deceptive trade practices; AG may adopt rules to implement the act.
• Not a lottery or gift enterprise; act clarifies its relation to state authority and constitution.
• Effective immediately upon 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