Bill Text: TX HB1544 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to fantasy sports contests.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-04-04 - Failed to receive affirmative vote in comm. [HB1544 Detail]
Download: Texas-2019-HB1544-Introduced.html
86R7306 ADM-D | ||
By: Raymond | H.B. No. 1544 |
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relating to fantasy sports contests. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle B, Title 13, Occupations Code, is | ||
amended by adding Chapter 2053 to read as follows: | ||
CHAPTER 2053. FANTASY SPORTS CONTESTS | ||
Sec. 2053.001. DEFINITIONS. In this chapter: | ||
(1) "Fantasy sports contest" means a competition in | ||
which: | ||
(A) a participant pays money or other | ||
consideration for the opportunity to assemble a fictional team | ||
composed of professional or amateur sports athletes selected by the | ||
participant to compete against other fictional teams of sports | ||
athletes assembled by other competition participants; | ||
(B) the outcome of the competition reflects the | ||
relative knowledge and skill of the participants and is based on the | ||
actual statistical performance of the selected athletes in sports | ||
competitions, or in a season or series of sports competitions; | ||
(C) a prize is awarded to the competition winner; | ||
(D) the outcome of the competition or the | ||
redemption of the winnings is not displayed or represented in a | ||
manner that mimics a slot machine or other form of casino gaming, | ||
including a banked card game, poker, craps, roulette, keno, lotto, | ||
and bingo; and | ||
(E) the competition is not presented using any | ||
depiction of a casino gaming graphic, theme, or title, including | ||
any depiction of a slot machine-style symbol, a banked card game, | ||
poker, craps, roulette, keno, lotto, and bingo. | ||
(2) "Fantasy sports operator" means a person, | ||
including an entity or a division of an entity, that offers fantasy | ||
sports contests to the public. | ||
(3) "Sports association" means a group of professional | ||
or amateur teams or athletes that compete against one another in a | ||
specific sport. | ||
Sec. 2053.002. LEGISLATIVE FINDINGS. (a) The legislature | ||
finds that a participant in a fantasy sports contest is an actual | ||
contestant in a bona fide competition to determine the skill of the | ||
participant in assembling a fictional team of sports athletes. | ||
(b) An individual who pays money or other consideration to | ||
participate in a fantasy sports contest is not placing a bet for | ||
purposes of the application of an offense under Chapter 47, Penal | ||
Code. | ||
Sec. 2053.003. PARTICIPATION IN FANTASY SPORTS CONTEST. An | ||
individual may pay money or other consideration to participate in a | ||
fantasy sports contest. | ||
Sec. 2053.004. OPERATION OF FANTASY SPORTS CONTEST. (a) A | ||
person may offer fantasy sports contests as a fantasy sports | ||
operator in this state in accordance with this chapter and any | ||
applicable federal law and may participate in the earnings of a | ||
business that offers fantasy sports contests. | ||
(b) A fantasy sports operator may not: | ||
(1) award a prize based: | ||
(A) on the score, the point spread, or any | ||
performance of a single professional or amateur sports team or any | ||
combination of professional or amateur sports teams; | ||
(B) solely on any single performance of an | ||
individual athlete in a single professional or amateur sports | ||
competition or other event; or | ||
(C) on a fantasy sports contest based on a live | ||
pari-mutuel racing performance regulated under Subtitle A-1 (Texas | ||
Racing Act); | ||
(2) offer a fantasy sports contest to the public | ||
without disclosing before the contest all prizes offered to winning | ||
participants of the contest; or | ||
(3) offer a fantasy sports contest based on the | ||
performance of athletes in a youth, high school, or collegiate | ||
sports competition or athletic event. | ||
Sec. 2053.005. CONSUMER PROTECTION. A fantasy sports | ||
operator shall implement commercially reasonable procedures for | ||
fantasy sports contests that: | ||
(1) prevent an employee or agent of the operator, and | ||
any relative living in the same household as the employee or agent, | ||
from competing in a fantasy sports contest offered by the operator | ||
to the public in which a cash prize is awarded; | ||
(2) prevent an employee or agent of the operator from | ||
sharing with third parties before the information is made publicly | ||
available information relevant to a fantasy sports contest that is | ||
obtained by the employee or agent because of the person's | ||
employment or agency and that could affect fantasy sports contest | ||
play; | ||
(3) verify that fantasy sports contest participants | ||
are 18 years of age or older; | ||
(4) restrict an individual who is a player, a game | ||
official, or another participant in a professional or amateur | ||
sports competition from participating in a fantasy sports contest | ||
that is determined, wholly or partly, on the performance of: | ||
(A) that individual, the individual's | ||
professional or amateur team, or the accumulated statistical | ||
results of the sport or competition in which the individual is a | ||
player, game official, or other participant; or | ||
(B) another individual or team competing in the | ||
same sports association in which the individual participates; and | ||
(5) segregate contest participants' funds from the | ||
operator's funds or maintain a reserve in the form of cash, cash | ||
equivalents, an irrevocable letter of credit, a bond, payment | ||
processor reserves, payment processor receivables, or any | ||
combination of those forms, in an amount equal to or greater than | ||
the total amount of funds in all contest participants' accounts, | ||
for the benefit and protection of the funds held in those accounts. | ||
Sec. 2053.006. INJUNCTIVE RELIEF. (a) The attorney | ||
general may institute an action for injunctive relief to restrain a | ||
violation by a person who appears to be in violation of or | ||
threatening to violate this chapter. | ||
(b) An action filed under this section by the attorney | ||
general must be filed in a district court in Travis County or the | ||
county in which the violation occurred. | ||
(c) The attorney general may recover reasonable expenses | ||
incurred in obtaining injunctive relief under this section, | ||
including court costs, reasonable attorney's fees, investigative | ||
costs, witness fees, and deposition expenses. | ||
(d) In an injunction issued under this section, a court may | ||
include reasonable requirements to prevent further violations of | ||
this chapter. | ||
SECTION 2. Section 47.02(c), Penal Code, as effective April | ||
1, 2019, is amended to read as follows: | ||
(c) It is a defense to prosecution under this section that | ||
the actor reasonably believed that the conduct: | ||
(1) was permitted under Chapter 2001, Occupations | ||
Code; | ||
(2) was permitted under Chapter 2002, Occupations | ||
Code; | ||
(3) was permitted under Chapter 2004, Occupations | ||
Code; | ||
(4) was permitted under Chapter 2053, Occupations | ||
Code; | ||
(5) consisted entirely of participation in the state | ||
lottery authorized by the State Lottery Act (Chapter 466, | ||
Government Code); | ||
(6) [ |
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Occupations Code (Texas Racing Act); or | ||
(7) [ |
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drawing for the opportunity to participate in a hunting, fishing, | ||
or other recreational event conducted by the Parks and Wildlife | ||
Department. | ||
SECTION 3. Section 47.09(a), Penal Code, as effective April | ||
1, 2019, is amended to read as follows: | ||
(a) It is a defense to prosecution under this chapter that | ||
the conduct: | ||
(1) was authorized under: | ||
(A) Chapter 2001, Occupations Code; | ||
(B) Chapter 2002, Occupations Code; | ||
(C) Chapter 2004, Occupations Code; | ||
(D) Chapter 2053, Occupations Code; | ||
(E) Subtitle A-1, Title 13, Occupations Code | ||
(Texas Racing Act); or | ||
(F) [ |
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(2) consisted entirely of participation in the state | ||
lottery authorized by Chapter 466, Government Code; or | ||
(3) was a necessary incident to the operation of the | ||
state lottery and was directly or indirectly authorized by: | ||
(A) Chapter 466, Government Code; | ||
(B) the lottery division of the Texas Lottery | ||
Commission; | ||
(C) the Texas Lottery Commission; or | ||
(D) the director of the lottery division of the | ||
Texas Lottery Commission. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2019. |