Alabama Regulates Daily Fantasy Sports

The US state of Alabama has regulated and legalised daily fantasy sports (DFS) again. The state has imposed a tax on DFS as well. This is a significant move, as the state banned DFS activity about three years ago, forcing companies like FanDuel and DraftKings to shut down their business in the state.

Alabama Governor Kay Ivey signed the DFS bill, which allows the attorney general’s office to oversee and regulate the industry, as well as to ensure compliance with fiscal obligations.

According to the provisions of the bill, bigger operators – those who make over $10 million nationwide – will have to pay a fee of $85,000 each year for their DFS license. Smaller operators need to pay $1,000. There will be a flat 10.5% tax on the gross revenue for all operators.

The legislation considers that DFS is a game of skill, not a game of chance. It means the DFS does not come under the purview of the state’s gambling laws.

The bill’s primary sponsor, Representative Kyle South, felt confident that this was the year for DFS and he was right. He said of DFS, “One thing you can point to are all these major league baseball teams, these professional sports teams are going to an analytics-based system for choosing their players, and that’s all we’re doing here.”