S.B. No. 2752 establishes a new regulatory framework for fantasy contests in Texas by adding Chapter 2053 to the Occupations Code. The bill defines key terms such as "fantasy contest," "fantasy contest operator," and "participant," and clarifies that fantasy contests are not considered gambling under Texas law. It requires operators to obtain a license from the Texas Lottery Commission, which will oversee regulation, enforce rules to prevent fraud and ensure compliance with age restrictions, and conduct background checks on applicants. The application process includes submitting personal and business information, criminal history, and fingerprints, with specific provisions for those who have recently undergone a national criminal history check.

The bill also introduces a tiered licensing fee structure based on the operator's previous activity, with fees ranging from 8% of adjusted gross fantasy contest receipts or a flat rate of $500,000 for established operators, to a $5,000 fee for new operators. It emphasizes responsible gaming practices, including maintaining a self-exclusion list and outlines penalties for violations, which may not exceed $5,000 per day. Additionally, it amends existing laws to expand the Texas Lottery Commission's authority to obtain criminal history information and mandates the adoption of rules for Chapter 2053 by February 1, 2026. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: ()