S.B. No. 2752 introduces a new chapter in the Texas Occupations Code to regulate fantasy contests, defining key terms such as "fantasy contest," "fantasy contest operator," and "participant." The bill clarifies that fantasy contests are not considered gambling under Texas law and requires operators to obtain a license from the Texas Lottery Commission, which will oversee regulation, enforce rules against fraud and money laundering, and ensure compliance with age restrictions and identity verification. The application process for a license includes submitting personal and business information, criminal history records, and fingerprints for background checks, with specific provisions for those who have recently undergone a national criminal history check.

The legislation establishes a fee structure based on the operator's adjusted gross fantasy contest receipts, with a minimum initial fee of $5,000. It outlines the process for license issuance and renewal, including independent audits and compliance reports, and sets participant eligibility and tax obligations. The bill also addresses compulsive gaming by creating a self-exclusion list and empowers the commission to investigate violations and impose penalties, which may not exceed $5,000 per violation. Additionally, it amends existing laws to expand the commission's authority to obtain criminal history information and mandates the adoption of necessary rules by February 1, 2026, while providing a temporary tax exemption for operators until July 1, 2026. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: ()