Stricken language would be deleted from and underlined language would be added to present law. *ANS057* 02/03/2023 09:57:53 AM ANS057 State of Arkansas 1 94th General Assembly A Bill 2 Regular Session, 2023 HOUSE BILL 1349 3 4 By: Representative Ray 5 By: Senator J. Dotson 6 7 For An Act To Be Entitled 8 AN ACT CONCERNING PA ID ESPORTS TOURNAMEN TS; AND FOR 9 OTHER PURPOSES. 10 11 12 Subtitle 13 CONCERNING PAID ESPORTS TOURNAMENTS. 14 15 16 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17 18 SECTION 1. Arkansas Code Title 23, is amended to add an additional 19 chapter to read as follows: 20 CHAPTER 118 21 PAID ESPORTS TOURNAMENTS 22 23 23-118-101. Legislative findings. 24 (a) The General Assembly finds that a paid esports tournament 25 conducted in compliance with this chapter does not constitute gambling for 26 any purpose. 27 (b) Paid and nonpaid esports tournaments conducted in compliance with 28 this chapter are exempt from § 5 -66-101 et seq. 29 30 23-118-102. Definitions. 31 As used in this chapter: 32 (1)(A) "Esports" means any form of multiplayer competition using 33 video gaming consoles, computers, or other electronic devices. 34 (B) "Esports" includes the ability to compete or perform 35 in front of an audience, and through an online platform, broadcast on 36 HB1349 2 02/03/2023 09:57:53 AM ANS057 television, or at an in -person event; 1 (2) "Esports tournament organizer" means a person that: 2 (A) Is engaged in the business of professionally 3 conducting paid esports tournaments for cash prizes for members of the 4 general public; and 5 (B) Requires cash or cash equivalent as an entry fee to be 6 paid by a member of the general public who participates in a paid esports 7 tournament; 8 (3) "Esports tournament participant" means an individual or 9 group of individuals who function as a team that participates in a paid or 10 nonpaid esports tournament offered by an esp orts tournament organizer; 11 (4) "Nonpaid esports tournament” means any: 12 (A) Esports event organized by an educational institution, 13 charity, nonprofit, or other institution that awards nonmonetary prizes; or 14 (B) Event that does not require an entr y or venue fee to 15 participate in esports; 16 (5)(A) "Paid esports tournament" means any esports event 17 facilitated by an esports tournament organizer for a cash prize or other 18 monetary compensation if an esports tournament participant is required to pay 19 an entry or venue fee to participate. 20 (B) "Paid esports tournament" includes any esports 21 tournament or contest that meets the following conditions: 22 (i) The values of all prizes and awards offered to 23 winning esports tournament participants in public contests, and the method 24 through which prizing is determined, are established and made known to the 25 esports tournament participants in advance of the tournament or contest; 26 (ii) All winning outcomes reflect the relative 27 knowledge and skill of the espo rts tournament participants and are determined 28 by the results of the performance of esports tournament participants; 29 (iii) A winning outcome is determined by the results 30 of fully completed contests or events and not merely a portion of a contest 31 or event, except that an esports tournament participant may be credited for 32 results in a suspended or shortened contest or event that has been suspended 33 or shortened by a decision of the esports tournament organizer on account of 34 weather or other natural or unf oreseen events; and 35 (iv)(a) Each paid esports tournament participant is 36 HB1349 3 02/03/2023 09:57:53 AM ANS057 required to pay an entry fee to participate. 1 (b) Each nonpaid esports tournament 2 participant is exempted from the requirement to pay an entry fee to 3 participate. 4 (c) Payment under subdivision (5)(B)(iv)(a) of 5 this section shall be with cash or a cash equivalent and is not gambling for 6 the purposes of § 5-66-101 et seq.; and 7 (6) "Person" means any association, corporation, limited 8 liability company, fiduciary, indivi dual, joint stock company, joint venture, 9 partnership, sole proprietorship, or other private legal entity. 10 11 23-118-103. Paid esports tournaments authorized. 12 An esports tournament organizer is authorized to conduct a paid esports 13 tournament through one ( 1) or more websites, local area networks, video 14 gaming platforms, or other similar gaming platforms maintained and operated 15 by the esports tournament organizer. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36