Texas Senate Bill SB1970

Texas 2017 - 85th Regular

Caption

Relating to fantasy sports contests.

Impact

The bill establishes a regulatory framework for fantasy sports in Texas by adding Chapter 2053 to the Occupations Code. This inclusion formally legalizes the operation of fantasy sports contests, thereby influencing existing laws around gambling and consumer protection. As a result, the bill may impact the landscape of online sports competitions and gaming, potentially allowing operators to run their businesses legitimately and encouraging growth within the industry. However, operators are required to adhere to certain stipulations aimed at safeguarding participants, such as ensuring participants are of legal age.

Summary

Senate Bill 1970 (SB1970) proposes regulations for fantasy sports contests in Texas. The bill defines 'fantasy sports contest' as a competition in which participants pay to create fictional teams that compete based on the actual performance of athletes. This legislation is designed to clarify the legal status of these contests, asserting that paying an entrance fee to participate does not constitute illegal betting under Texas law. By codifying these definitions, SB1970 aims to create a framework that promotes participation in fantasy sports while ensuring consumer protection.

Contention

Despite the potential benefits of increased regulation, there may be points of contention surrounding SB1970. Critics of the legislation might argue that it opens the door to gambling under the guise of fantasy sports, which could lead to broader gambling issues in Texas. Additionally, the bill's limitations on contest operations—prohibiting awards based on the performance of a single team or athlete—could be scrutinized for potentially limiting the creativity and appeal of fantasy contests. Stakeholders from both sides of the debate may present concerns regarding the balance between regulation and opportunity within the gaming industry.