Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas As Engrossed: H2/15/23 1
94th General Assembly A Bill 2
Regular Session, 2023 HOUSE BILL 1349 3
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By: Representatives Ray, V. Flowers 5
By: Senator J. Dotson 6
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For An Act To Be Entitled 8
AN ACT CONCERNING PA ID ESPORTS TOURNAMEN TS; AND FOR 9
OTHER PURPOSES. 10
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Subtitle 13
CONCERNING PAID ESPORTS TOURNAMENTS. 14
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
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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
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23-118-101. Legislative findings. 24
(a) The General Assembly finds that a paid esports tournament 25
conducted in compliance with t his 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
(c) Income earned by esports tournament competitors or esports 30
tournament organizers as a result of a paid esports tournament is taxable 31
under the Income Tax Act of 1929, § 26-51-101 et seq. 32
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23-118-102. Definitions. 34
As used in this chapter: 35
(1)(A) "Esports" means any form of multiplayer competition in 36 As Engrossed: H2/15/23 HB1349
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which competitors co mpete against each other using video gaming consoles, 1
computers, or other electronic devices. 2
(B) "Esports" includes the ability to compete or perform 3
in front of an audience, and through an online platform, broadcast on 4
television, or at an in -person event. 5
(C) "Esports" does not include a: 6
(i) House-banked game in which participants compete 7
or play against the house, including without limitation an operator, rather 8
than other participants; or 9
(ii) Casino-style gambling game or other gambling 10
game customarily offered at a casino; 11
(2) "Esports tournament organizer" means a person that: 12
(A) Is engaged in the business of professionally 13
conducting paid esports tournaments for cash prizes for esports tournament 14
competitors; and 15
(B) Requires cash or cash equivalent as an entry fee to be 16
paid by a member of the general public who competes in a paid esports 17
tournament; 18
(3) "Esports tournament competitor" means an individual or group 19
of individuals who function as a team that competes in a paid or nonpaid 20
esports tournament offered by an esports tournament organizer; 21
(4) "Nonpaid esports tournament” means any: 22
(A) Esports event organized by an educational institution, 23
charity, nonprofit, or other institution that awards nonmonetary prizes to 24
esports tournament competitors; or 25
(B) Event that does not require an entry or venue fee to 26
competes in esports; 27
(5)(A) "Paid esports tournament" means, and is limited to, any 28
esports event facilitated by an esports tournament organizer for a cash prize 29
or other monetary compensation if an esports tournament competitor is 30
required to pay an entry or venue fee to compete. 31
(B) "Paid esports tournament" includes any esports 32
tournament or contest that meets the following conditions: 33
(i) The values of all prizes and awards offered to 34
winning esports tournament competitors in public contests, and the method 35
through which prizing is determined, are established and made known to the 36 As Engrossed: H2/15/23 HB1349
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esports tournament competitors in advance of the tournament or contest; 1
(ii) All winning outcomes reflect the relative 2
knowledge and skill of the esports tournament competitors and are determined 3
by the results of the performance of esports tournament competitors; 4
(iii) A winning outcome is determined by the results 5
of fully completed contests or events and not merely a portion of a contest 6
or event, except that an esports tou rnament competitor may be credited for 7
results in a suspended or shortened contest or event that has been suspended 8
or shortened by a decision of the esports tournament organizer on account of 9
weather or other natural or unforeseen events; and 10
(iv)(a) Each paid esports tournament competitor is 11
required to pay an entry fee to compete. 12
(b) Each nonpaid esports tournament competitor 13
is exempted from the requirement to pay an entry fee to compete. 14
(c) Payment under subdivision (5)(B)(iv)(a) of 15
this section shall be with cash or a cash equivalent and is not gambling for 16
the purposes of § 5-66-101 et seq.; and 17
(6) "Person" means any association, corporation, limited 18
liability company, fiduciary, individual, joint stock company, joint venture, 19
partnership, sole proprietorship, or other private legal entity. 20
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23-118-103. Paid esports tournaments authorized. 22
(a) An esports tournament organizer is authorized to conduct a paid 23
esports tournament through one (1) or more websites, local area networ ks, 24
video gaming platforms, or other similar gaming platforms maintained and 25
operated by the esports tournament organizer under this chapter. 26
(b)(1) Wagering on the outcome of an esports tournament is not 27
authorized under this chapter. 28
(2) Only casinos licensed and regulated by the Arkansas Racing 29
Commission under The Arkansas Casino Gaming Amendment of 2018, Arkansas 30
Constitution, Amendment 100, may conduct wagering on the outcome of an 31
esports tournament. 32
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/s/Ray 34
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