Texas Senate Bill SB2752

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to the regulation of fantasy contests; requiring an occupational license; imposing an administrative penalty; authorizing fees; imposing a tax.

Impact

By establishing regulatory oversight through the Texas Lottery Commission, SB2752 shifts the fantasy contest landscape, setting a legal boundary around what constitutes permissible operations. The bill also highlights the importance of responsible gaming practices. Fantasy contest operators will now be required to report violations, manage self-exclusion lists for individuals with gambling issues, and provide regular audits to ensure compliance with the regulations. The implications of such an oversight structure aim to enhance consumer protection and prevent potential abuses in the burgeoning fantasy contest industry.

Summary

SB2752 aims to regulate fantasy contests in Texas, introducing a framework requiring operators of these contests to obtain an occupational license. It defines fantasy contests and sets out specific criteria and requirements for the operation of such contests, including the need for operators to implement measures preventing participation by minors, identify verification procedures, and ensure transparency regarding contest rules and prize distribution. The bill insists on protecting participants and maintaining the integrity of fantasy contest operations within the state.

Contention

However, the introduction of this regulatory framework has sparked debates among stakeholders. Proponents view it as a necessary move to standardize operations and establish a safer environment for participants. Critics may argue that by imposing taxes and administrative penalties, the bill could burden operators and stifle market growth. Additionally, concerns arise over how the regulatory measures could limit innovation within the fantasy contest space, with some viewing it as an overreach that could hinder the sector's development.

Texas Constitutional Statutes Affected

Government Code

• Chapter 411. Department Of Public Safety Of The State Of Texas
  • Section: New Section