HB361 - Fantasy Contests Act Summary

• Establishes the Fantasy Contests Act to regulate fantasy contests in Alabama and exempt them from gambling prohibitions, defining fantasy contests as games of skill where outcomes are determined by accumulated statistical performance of individual athletes across multiple events, not single team or player performances.

• Requires all fantasy contest operators to register with the Office of the Attorney General, with operators who operated prior to May 1, 2016 having 60 days to apply; large operators (over $10 million national gross revenues) pay $85,000 initial and annual renewal fees, while smaller operators pay $1,000 initial and annual fees.

• Imposes an annual tax of 10.5% on operators' gross fantasy contest revenues attributable to Alabama players, deposited to the State General Fund.

• Mandates operators implement consumer protection procedures including age verification (19+), segregation of player funds or financial reserves, prevention of insider trading of confidential information, annual independent audits by certified public accountants, and prohibition of contests based on high school or youth sports.

• Classifies violations as deceptive trade practices enforceable under Alabama's Deceptive Trade Practices Act; exempts fantasy contests from lottery and gambling laws.