The proposed bill introduces the Fantasy Sports Consumer Protection Act in Nebraska, establishing a regulatory framework for fantasy contest operators. It defines key terms such as "fantasy contest," "fantasy contest operator," and "participant," and sets forth licensing requirements for operators, including a nonrefundable application fee of $5,000. The bill mandates that operators implement measures to prevent fraud and underage participation, utilize geolocation technology for compliance, and conduct independent audits. Existing operators are allowed to continue offering contests temporarily while they apply for licensure.

Additionally, the bill imposes a 10% tax on fantasy contest operators' adjusted gross receipts starting July 1, 2026, with proceeds directed to the General Fund and the Compulsive Gamblers Assistance Fund. It establishes penalties for violations, creates the Fantasy Sports Consumer Protection Fund for administration, and requires responsible gaming measures, including self-exclusion programs. The bill also amends several sections of the Revised Statutes Cumulative Supplement, 2024, updating definitions related to gambling activities and clarifying that engaging in fantasy contests is permissible under the new act. The original sections 28-1101, 28-1105, and 28-1113 are repealed, reflecting a significant update to Nebraska's gambling laws.

Statutes affected:
Introduced: 28-1101, 28-1105, 28-1113