Establishes the fantasy sports consumer protection act.
H6076 creates a new chapter in Rhode Island law called the Fantasy Sports Consumer Protection Act. It authorizes the Department of Business Regulation to license and regulate fantasy contest operators that offer paid fantasy sports contests to the public, and it defines key terms such as fantasy contest, participant, athlete, sports governing body, and prohibited participant. The bill states that licensed fantasy contests are not gambling for purposes of state law, but it makes operation of paid fantasy contests lawful only if conducted under the new chapter’s requirements.
The bill sets out a detailed regulatory framework for licensing, background checks, audits, reporting, and consumer protections. Operators must obtain a license, submit ownership and criminal-history information, use geolocation and identity-verification tools, prevent underage play, detect fraud and money laundering, and maintain responsible gaming and self-exclusion procedures. The department would also investigate prohibited conduct, coordinate with law enforcement, and require operators to report issues such as match fixing, illegal activity, and violations involving athletes or other prohibited participants.
The bill would add a new regulatory and tax structure to Title 5 governing fantasy sports in Rhode Island. It would give the Department of Business Regulation authority to issue licenses, adopt rules, collect fees and penalties, enforce compliance, and administer a self-exclusion program. It also imposes a 10% tax on a licensee’s adjusted gross fantasy contest receipts beginning July 1, 2025, and establishes application, renewal, audit, and reporting requirements that would apply to both new and existing operators serving Rhode Island players.
Based on the bill text and the absence of recorded committee testimony or votes, the overall posture of the bill appears supportive of legalizing and regulating fantasy sports rather than prohibiting them. The legislation is framed as a consumer-protection and integrity measure, emphasizing oversight, age verification, anti-fraud controls, and problem-gaming safeguards. Its structure suggests an effort to legitimize an existing market while bringing it under state supervision and taxation.
The main points of potential contention are the scope of state regulation, the 10% tax rate, and the treatment of fantasy sports as non-gambling under state law. The bill limits participation to people physically located in Rhode Island and gives DBR broad authority over licensing, audits, geolocation, and enforcement, which could raise concerns among operators about compliance costs and operational restrictions. It also expressly bars the department from regulating the internal rules or statistical makeup of individual contests, indicating a balance between consumer protection and industry autonomy. No specific objections or amendments are reflected in the provided committee or vote history.