Back in 2016, then-Attorney General Luther Strange sent cease-and-desist letters to fantasy sports operators, including DraftKings and FanDuel, proclaiming their daily fantasy sports gaming was illegal gambling.
Since then, there have been attempts by the legislature to clarify fantasy sports as a game of skill and not a game of chance but they failed until State Rep. Kyle South (R-Fayette) pushed through a bill that was signed into law by Gov. Kay Ivey earlier this year defining that type of gaming as a game of skill.
In an appearance on Alabama Public Television’s “Capitol Journal” that aired Friday, South credited constituents for putting pressure on the legislature.
“I think there was a focus on it,” he explained. “I think the needs from the general fund. But I think some pressure from constituents actually got it across the finish line.”
In addition to legalizing fantasy gaming, the law also levies a tax on operators, with proceeds put toward Alabama’s general fund.
“There’s a 10-and-a-half percent tax on the operators for their net revenues,” South said. “It should generate between $3-4 million a year for the state’s general fund.”
South speculated the 700,000 people playing prior to Strange’s opinion showed his effort had strong support.
“A lot of people,” he replied. “Up until three years ago, totally legal across the state. There was some question about how it fit into state statute and DraftKings and FanDuel pulled out of the state and needed further clarification, and that’s what this bill provides is further clarification. There were 700,000 Alabamians playing when they took that step back.”
According to South, the bill distinguishes fantasy sports as a game of skill and not a game of chance.
“It’s very hard to argue that,” South said. “It takes a lot of skill. I told my mother no offense to her, but if we played 10 times, I’m going to beat her all 10 times because I know more about sports than she does. It is a game of skill.”
@Jeff_Poor is a graduate of Auburn University, the editor of Breitbart TV and host of “The Jeff Poor Show” from 2-5 p.m. on WVNN in Huntsville.
