Alabama fantasy sports bill fails in Senate ahead of vote
The daily fantasy sports (DFS) industry apparently will not be getting the green-light to operate in Alabama any time soon. Despite unanimously passing the Senate Tourism and Marketing Committee earlier this month, SB325 —which would establish the Fantasy Contests Act and provide for the registration of certain fantasy sports operators conducting fantasy sports contests within the state — was decisively shut down on the floor during Tuesday’s session before even given a chance to take a vote on the matter. History of Fantasy Sports in Alabama In April 2016, former state Attorney General Luther Strange sent cease-and-desist letters to two Daily Fantasy Sports companies — DraftKings and FanDuel — after determining that paid daily fantasy sports contests constitute illegal gambling. In DFS, participants pay to create a roster of players, then pit their roster against those of other participants. Whomever’s roster performs the best that day within a certain pool wins prize money through the site. According to Alabama code section 13A-20-12, a person participates in gambling if he or she “stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he or someone else will receive something of value in the event of a certain outcome.” Gambling in Alabama is illegal, with a few exceptions including buying securities and commodities, insurance, and some grandfathered activities. DFS sites often contend they are games of skill, not of chance, and thus aren’t covered under most states’ gambling laws, nevertheless the companies complied with Strange’s request. Sanford contends 400,000 Alabamans played fantasy sports before it was banned from the Yellowhammer State. Previous legislative attempts to legalize fantasy sports For three years now state lawmakers have endeavored to legalize fantasy sports. Last year the House passed its version of a bill doing just that, but the Senate adjourned for the session without ever taking it up. Since the bill’s sponsor, Huntsville-Republican state Sen. Paul Sanford, is retiring it is unknown whether or not the legislation will be introduced again in the future.
Fantasy Sports bill unanimously passes Senate Committee, advances
The Senate Tourism and Marketing Committee unanimously approved legislation on Wednesday that would legalize fantasy sports contests. Under existing law, there are no regulations relating to fantasy sports. Sponsored by Huntsville-Republican state Sen. Paul Sanford, SB325 would establish the Fantasy Contests Act and provide for the registration of certain fantasy sports operators conducting fantasy sports contests within the state. Specifically, the bill: Sets the registration and annual renewal fee for operators $5,000 for new operators $85,000 for existing operators with more than 5,000 customers Sets the minimum playing age at 19 Excludes contests based on collegiate and amateur events Installs consumer protections comparable to those in other states History of Fantasy Sports in Alabama In April 2016, former state Attorney General Luther Strange sent cease-and-desist letters to two Daily Fantasy Sports companies — DraftKings and FanDuel — after determining that paid daily fantasy sports contests constitute illegal gambling. In daily fantasy sports (DFS), participants pay to create a roster of players, then pit their roster against those of other participants. Whomever’s roster performs the best that day within a certain pool wins prize money through the site. According to Alabama code section 13A-20-12, a person participates in gambling if he or she “stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he or someone else will receive something of value in the event of a certain outcome.” Gambling in Alabama is illegal, with a few exceptions including buying securities and commodities, insurance, and some grandfathered activities. DFS sites often contend they are games of skill, not of chance, and thus aren’t covered under most states’ gambling laws, nevertheless the companies complied with Strange’s request. Sanford contends 400,000 Alabamans played fantasy sports before it was banned from the Yellowhammer State. Previous legislative attempts to legalize fantasy sports For three years now state lawmakers have endeavored to legalize fantasy sports. Last year the House passed its version of a bill doing just that, but the Senate adjourned for the session without ever taking it up. The bill now advances to the full Senate.
Senate committee tackles several bills ranging from veterans to background checks
The Senate Committee on Governmental Affairs met shortly before the start of session Tuesday to move on a variety of bills. First on the committee’s agenda was SB325 from Sen. Gerald Dial (R-Lineville), which codifies the jobs of the newly formed Legislative Services Agency. Currently, three departments are responsible for various legislative tasks: the Alabama Law Institute, the Legislative Reference Service and the Legislative Fiscal Office. Dial’s bill would establish the Legislative Services Agency, which would oversee the operations of the three. Dial noted that the move would decrease future spending. Sen. Arthur Orr (R-Decatur) opposed the bill, noting that earlier discussions had decided that a codification of the agency wouldn’t happen until lawmakers were able to see how the changes worked, but the bill garnered a favorable report despite the opposition. Dial also brought SB161 before the committee, which would provide businesses owned by veterans of Operation Enduring Freedom (Afghanistan) and Operation Iraqi Freedom with preferred vendor status in competitive bids. Essentially, if a veteran-owned business is within 5 percent of another bidders offering, the veteran-owned operation is given preference. The committee gave the bill a favorable report with a unanimous vote. The committee also approved a bill from Sen. J.T. Waggoner, SB304, which will allow sheriff’s to issue pistol permits to residents of different counties. The National Rifle Association-drafted legislation is said to be for “convenience purposes” and would still allow sheriffs to revoke licenses provided to residents of their counties. The committee also approved a bill that would require polygraph examiners to pass a background check to attain their license, as well as a bill that would extend the renewal period for driver licenses to six months prior to expiration. Currently, residents receive a notification only 30 days prior to their license’s expiration. The bill would allow residents more time to renew their driver licenses.
