LITTLE ROCK, AR (KAIT) - A bill that would allow fantasy sports companies to operate in the state of Arkansas was approved Monday in the state House of Representatives.
Under the bill, a paid fantasy sports game, like Draft Kings or FanDuel, would not be considered gambling under state law. Also, the company would have to pay an 8% tax based on the game operator's gross paid fantasy sports game revenues from the previous state fiscal year.
Gazaway told the House Monday that there are estimates of nearly 500,000 people in the state who participate in the games during sports season.
Typically, a group of people will select a team, based on the player's salary. Under the bill, the amount of prizes and awards must be known beforehand, winning must be based on knowledge and skill; and not based on score, point spread or performances of teams.
Also, the fantasy sports leagues cannot use college sports, high school sports, horse racing, or greyhound racing as part of their contests, according to the bill.
The bill now heads to the Senate.
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