NC H279

Establishes new Chapter 78E requiring fantasy sports contest operators to register with the Department of the Secretary of State before offering contests in North Carolina.

Registration applicants must submit detailed information about their business operations, ownership, and staff, and demonstrate commercially reasonable procedures including age verification (18+), prevention of insider participation, segregation of player funds, and restrictions on contests involving collegiate or high school athletics.

Initial registration fee is 10% of operator's prior year gross fantasy contest revenues (minimum $2,500, maximum $10,000), with renewal fees of the lesser of $5,000 or 10% of net revenue from previous calendar year; registrations expire every five years.

Department of Secretary of State may deny, revoke, or suspend registrations for false statements, fraud, criminal convictions, non-compliance, or unpaid debts, and may assess civil penalties up to $1,000 per violation (maximum $10,000 for continuing violations) after providing 30 days' notice and a hearing.

Defines fantasy contests as games where entry fees are charged, prizes are predetermined, outcomes depend on participant skill and accumulated statistical results (not single-game performance), and clarifies that fantasy contests are not considered gambling under North Carolina law.