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A BILL TO BE ENTITLED
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AN ACT
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relating to fantasy sports contests. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 13, Occupations Code, is |
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amended by adding Chapter 2053 to read as follows: |
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CHAPTER 2053. FANTASY SPORTS CONTESTS |
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Sec. 2053.001. DEFINITIONS. In this chapter: |
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(1) "Fantasy sports contest" means a competition in |
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which: |
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(A) a participant pays money or other |
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consideration for the opportunity to assemble a fictional team |
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composed of professional or amateur sports athletes selected by the |
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participant to compete against other fictional teams of sports |
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athletes assembled by other competition participants; |
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(B) the outcome of the competition reflects the |
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relative knowledge and skill of the participants and is based on the |
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actual statistical performance of the selected athletes in sports |
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competitions, or in a season or series of sports competitions; |
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(C) a prize is awarded to the competition winner; |
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(D) the outcome of the competition or the |
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redemption of the winnings is not displayed or represented in a |
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manner that mimics a slot machine or other form of casino gaming, |
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including a banked card game, poker, craps, roulette, keno, lotto, |
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and bingo; and |
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(E) the competition is not presented using any |
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depiction of a casino gaming graphic, theme, or title, including |
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any depiction of a slot machine-style symbol, a banked card game, |
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poker, craps, roulette, keno, lotto, and bingo. |
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(2) "Fantasy sports operator" means a person, |
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including an entity or a division of an entity, that offers fantasy |
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sports contests to the public. |
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(3) "Sports association" means a group of professional |
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or amateur teams or athletes that compete against one another in a |
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specific sport. |
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Sec. 2053.002. LEGISLATIVE FINDINGS. (a) The legislature |
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finds that a participant in a fantasy sports contest is an actual |
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contestant in a bona fide competition to determine the skill of the |
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participant in assembling a fictional team of sports athletes. |
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(b) An individual who pays money or other consideration to |
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participate in a fantasy sports contest is not placing a bet for |
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purposes of the application of an offense under Chapter 47, Penal |
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Code. |
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Sec. 2053.003. PARTICIPATION IN FANTASY SPORTS CONTEST. An |
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individual may pay money or other consideration to participate in a |
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fantasy sports contest. |
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Sec. 2053.004. OPERATION OF FANTASY SPORTS CONTEST. (a) A |
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person may offer fantasy sports contests as a fantasy sports |
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operator in this state in accordance with this chapter and any |
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applicable federal law and may participate in the earnings of a |
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business that offers fantasy sports contests. |
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(b) A fantasy sports operator may not: |
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(1) award a prize based: |
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(A) on the score, the point spread, or any |
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performance of a single professional or amateur sports team or any |
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combination of professional or amateur sports teams; |
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(B) solely on any single performance of an |
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individual athlete in a single professional or amateur sports |
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competition or other event; or |
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(C) on a fantasy sports contest based on a live |
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pari-mutuel racing performance regulated under Subtitle A-1 (Texas |
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Racing Act); |
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(2) offer a fantasy sports contest to the public |
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without disclosing before the contest all prizes offered to winning |
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participants of the contest; or |
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(3) offer a fantasy sports contest based on the |
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performance of athletes in a youth, high school, or collegiate |
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sports competition or athletic event. |
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Sec. 2053.005. CONSUMER PROTECTION. A fantasy sports |
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operator shall implement commercially reasonable procedures for |
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fantasy sports contests that: |
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(1) prevent an employee or agent of the operator, and |
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any relative living in the same household as the employee or agent, |
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from competing in a fantasy sports contest offered by the operator |
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to the public in which a cash prize is awarded; |
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(2) prevent an employee or agent of the operator from |
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sharing with third parties before the information is made publicly |
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available information relevant to a fantasy sports contest that is |
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obtained by the employee or agent because of the person's |
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employment or agency and that could affect fantasy sports contest |
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play; |
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(3) verify that fantasy sports contest participants |
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are 18 years of age or older; |
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(4) restrict an individual who is a player, a game |
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official, or another participant in a professional or amateur |
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sports competition from participating in a fantasy sports contest |
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that is determined, wholly or partly, on the performance of: |
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(A) that individual, the individual's |
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professional or amateur team, or the accumulated statistical |
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results of the sport or competition in which the individual is a |
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player, game official, or other participant; or |
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(B) another individual or team competing in the |
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same sports association in which the individual participates; and |
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(5) segregate contest participants' funds from the |
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operator's funds or maintain a reserve in the form of cash, cash |
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equivalents, an irrevocable letter of credit, a bond, payment |
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processor reserves, payment processor receivables, or any |
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combination of those forms, in an amount equal to or greater than |
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the total amount of funds in all contest participants' accounts, |
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for the benefit and protection of the funds held in those accounts. |
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Sec. 2053.006. INJUNCTIVE RELIEF. (a) The attorney |
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general may institute an action for injunctive relief to restrain a |
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violation by a person who appears to be in violation of or |
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threatening to violate this chapter. |
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(b) An action filed under this section by the attorney |
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general must be filed in a district court in Travis County or the |
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county in which the violation occurred. |
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(c) The attorney general may recover reasonable expenses |
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incurred in obtaining injunctive relief under this section, |
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including court costs, reasonable attorney's fees, investigative |
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costs, witness fees, and deposition expenses. |
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(d) In an injunction issued under this section, a court may |
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include reasonable requirements to prevent further violations of |
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this chapter. |
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SECTION 2. Section 47.02(c), Penal Code, as effective April |
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1, 2019, is amended to read as follows: |
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(c) It is a defense to prosecution under this section that |
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the actor reasonably believed that the conduct: |
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(1) was permitted under Chapter 2001, Occupations |
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Code; |
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(2) was permitted under Chapter 2002, Occupations |
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Code; |
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(3) was permitted under Chapter 2004, Occupations |
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Code; |
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(4) was permitted under Chapter 2053, Occupations |
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Code; |
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(5) consisted entirely of participation in the state |
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lottery authorized by the State Lottery Act (Chapter 466, |
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Government Code); |
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(6) [(5)] was permitted under Subtitle A-1, Title 13, |
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Occupations Code (Texas Racing Act); or |
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(7) [(6)] consisted entirely of participation in a |
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drawing for the opportunity to participate in a hunting, fishing, |
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or other recreational event conducted by the Parks and Wildlife |
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Department. |
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SECTION 3. Section 47.09(a), Penal Code, as effective April |
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1, 2019, is amended to read as follows: |
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(a) It is a defense to prosecution under this chapter that |
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the conduct: |
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(1) was authorized under: |
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(A) Chapter 2001, Occupations Code; |
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(B) Chapter 2002, Occupations Code; |
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(C) Chapter 2004, Occupations Code; |
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(D) Chapter 2053, Occupations Code; |
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(E) Subtitle A-1, Title 13, Occupations Code |
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(Texas Racing Act); or |
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(F) [(E)] Chapter 280, Finance Code; |
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(2) consisted entirely of participation in the state |
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lottery authorized by Chapter 466, Government Code; or |
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(3) was a necessary incident to the operation of the |
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state lottery and was directly or indirectly authorized by: |
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(A) Chapter 466, Government Code; |
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(B) the lottery division of the Texas Lottery |
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Commission; |
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(C) the Texas Lottery Commission; or |
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(D) the director of the lottery division of the |
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Texas Lottery Commission. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |