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ARIZONA STATE SENATE

Fifty-Fourth Legislature, Second Regular Session

 

FACT SHEET FOR S.B. 1438

 

fantasy sports competitions; definition

Purpose

            Excludes fantasy competitions from the definition of gambling and defines fantasy competitions.

Background

            Arizona's Criminal Code prohibits: 1) promotion of gambling, except for amusement gambling, regulated gambling or social gambling; and 2) benefiting from gambling, except for amusement gambling or regulated gambling (A.R.S. §§ 13-3303 and 13-3304). Gambling means an act of risking or giving something of value for the opportunity to obtain a benefit from a game or contest of chance or skill or a future contingent event but does not include bona fide business transactions that are valid under the law of contracts (A.R.S. § 13-3301).

            Except for pari-mutuel wagering on horse races, a person may not engage in the business of betting and wagering, for a fee, property, salary or reward, on the result or purported result of a race, sporting event, contest or other game of skill or chance or any other unknown  future event or occurrence (A.R.S. § 13-3305).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.      Excludes fantasy competitions from the definition of gambling.

2.      Defines fantasy competitions as a fantasy or simulated sports or educational game or contest involving a fantasy team that is not based on current membership of an actual team that is a member of an amateur or professional sports organization.

3.      Requires, for qualification as a fantasy competition:

a)      prizes and awards to be established and made known in advance; and

b)      prize and award values to not be determined by the number of participants or the amount of fees participants pay.

4.      Requires, for qualification as a fantasy competition, winning outcomes to:

a)      reflect participants' relative knowledge and skill;

b)      be determined by accumulated statistical results of the performance of individuals in multiple real-world sporting events or other events;

c)      not be based on the score, point spread or performance of a real-world team or combination of teams; and

d)      not be based solely on an individual athlete's single performance in a real-world sporting or other event.

5.      Makes technical and conforming changes.

6.      Becomes effective on the general effective date.

Prepared by Senate Research

February 4, 2020

LB/gs