The state of Alabama is welcoming back daily fantasy sports (DFS) with open arms. Legislation was passed recently and signed by Governor, Kay Ivey, legalizing DFS over three years after the activity was deemed illegal in the state. The bill passed into law with no fanfare, allowing operators such as FanDuel and DraftKings to offer their services in the region once again.
Back in Business:
Daily fantasy sports services ceased in 2016 when the attorney general at the time, Luther Strange, decided to release the opinion that the activity was illegal. Since that time, bills involving DFS have failed to move forward until this year. In May, a bill passed in both chambers with overwhelming approval.
According to Legalsportsreport.com…
FanDuel, FantasyDraft and DraftKings have all indicated that they will be offering services in Alabama. A spokesperson for FanDuel issued a statement which read: “We are excited to bring FanDuel Daily Fantasy Sports to the great people of Alabama. We would like to thank Rep. Kyle South, who fought tirelessly to bring fantasy sports back to Alabama. We also are grateful for the support from Speaker McCutcheon, Sen. Del Marsh, and Sen. Tom Whatley. We are working hard to bring our fantasy sports products to Alabama residents, and we will have more details very soon.”
Components of the Law:
With the new law, the daily fantasy sports contents will be overseen by the office of the Attorney General. Operators like FanDuel and DraftKings, who generate over $10 million in revenues, will need to pay a registration fee each year of $85,000. Smaller operators will only have to pay a $1,000 fee annually.
A tax of 10.5% has been set on gross revenues from daily fantasy sports. Originally, the tax was set at 8.2%. The increase was made last minute by Representative, Kyle South.
A timeline has yet to be given by operators as to when they will be back in business in Alabama. Presumably it won’t be long as the companies like FanDuel and DraftKings will be ready to get started offering services in the region as soon as they can.