BILL ANALYSIS

H.B. 2142

By: Guillen

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

In 2016, Texas Attorney General Opinion No. KP-0057 stated that participation in fantasy sports is not legal based on the current definition of the word "bet" in statute. There is a need to resolve ambiguity surrounding the term "bet" and the corresponding lack of clarity regarding the legal status of fantasy or simulated games or contests. H.B. 2142 seeks to clarify that participation in fantasy sports is legal by revising the definition of the word "bet" under applicable statutory provisions to include an offer of a prize, award, or compensation to participants in a fantasy or simulated game or contest.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2142 amends the Penal Code to exclude an offer of a prize, award, or compensation to the participants in a fantasy or simulated game or contest from the agreements classified as a bet for purposes of gambling-related offenses and clarifies that the existing exclusion for a prize, award, or compensation offered in a bona fide contest for the determination of skill, speed, strength, or endurance applies with respect to participants in such a contest as well as contestants. The bill defines "fantasy or simulated game or contest" as a bona fide contest, reflecting the knowledge and skill of the participants, in which the following conditions are met:

· one or more participants assemble or manage fictional rosters composed of actual professional or amateur athletes to compete against other participants or to achieve a preestablished score or other numerical measure of actual performance to win a prize, award, or compensation;

· the value of the prize, award, or compensation is established before the game or contest begins;

· the outcome of the game or contest is determined by the accumulated statistical performances of the individual athletes on a participant's assembled team;

· the winning outcome of the game or contest is not based solely on the score, point spread, or performance of a single professional or amateur team or athlete; and

· participants pay an entry fee to the operator of the game or contest.

The bill applies only to an offense committed on or after the bill's effective date and provides for the continuation of the law in effect before the bill's effective date for purposes of an offense, or any element thereof, that occurred before that date.

EFFECTIVE DATE

September 1, 2023.