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 narrowly approves Alabama lottery bill
A Senate committee narrowly approved a state lottery bill on Wednesday. The Senate Tourism and Marketing Committee okayed SB326, sponsored by Huntsville-Republican state Sen. Paul Sanford, by a 3-2 vote. The legislation proposes a constitutional amendment, which the voters would have to approve, that would allow Alabama to join multi-state lottery games only such as Powerball and Mega Millions. The legislative fiscal office estimates the lottery would generate $45 million annually. Alabama is one of only six states — Alaska, Hawaii, Mississippi, Nevada, and Utah — without a state lottery.
Lottery bills get first test in Alabama Legislature
Lottery bills are getting their first test with Alabama lawmakers. The Senate Tourism and Marketing Committee is meeting Tuesday morning for public hearings on five different lottery bills. The committee could vote as soon as Tuesday afternoon. The proposals up for debate include Gov. Robert Bentley‘s plan to set up a lottery to fund Medicaid. However, lawmakers have introduced several rival proposals. One would also allow electronic lottery terminals, which can resemble slot machines, at four state dog tracks, and seek a compact with the Poarch Band of Creek Indians. Another bill would limit a lottery to multistate games, such as Powerball, to save administration costs. Alabama is one of six states without a lottery. However, lawmakers say the bills face an uncertain outlook in the special session. Republished with permission of The Associated Press.
Gaming moves forward
It was a busy morning at the Statehouse and Capitol Thursday. Sen. Del Marsh‘s gambling bill has cleared the Senate Tourism and Marketing Committee by a 5-3 vote. That means the conversation will continue as the Legislature attempts to find more revenue sources that don’t include tax increases. The bill allows voters to choose to accept gaming expansion or not. We’ll report on reactions as we get them.
