Alabama Daily Fantasy Sports
Daily fantasy sports sites and pick’em apps are legal in Alabama thanks to legislation passed in 2019.
Alabama fantasy sports laws require operators to apply for licenses, adhere to consumer protection regulations, and pay a 10.5% tax on their in-state revenue.
Alabama Daily Fantasy Sports Sites
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All Alabama fantasy sports sites must register with the Office of the Attorney General and implement various integrity, safety, and responsible gambling protocols.
Some of the key Alabama daily fantasy sports rules require licensed operators to:
- Enforce a minimum age of 19 to participate in daily fantasy sports contests
- Prevent athletes, coaches, and league officials from participating in contests based on events they participate in or manage
- Maintain voluntary self-exclusion programs for customers
The Attorney General’s website does not list registered Alabama fantasy sports websites, so users must exercise discretion when choosing where to play.
However, BettingUSA has identified the most prominent fantasy sports sites that are registered to operate in Alabama:
Alabama Fantasy Pick ‘Em Apps
Unlike traditional DFS leagues, pick ’em fantasy contests involve making predictions on individual athletes’ stats and competing against the house rather than other players.
In some states, regulators have determined pick’em contests constitute illegal sports betting and ordered operators to cease all such activities.
The Alabama Attorney General’s Office investigated the issue and reached a similar conclusion but did not demand an end to pick ’em contests.
Instead, the Attorney General asked daily fantasy sports operators to adjust the rules of their pick’em games to eliminate projections on individual athletes’ stats.
For example, a typical high/low contest offered before the AG’s request would have asked fans to select three or more athletes and choose higher or lower on a projected stat for each athlete (passing yards, 3-pointers, etc.).
Now, that type of pick ’em contest at Alabama daily fantasy sports sites would have customers select three or more pairs of athletes and pick higher or lower on each pair’s combined stats total.
Alabama’s three largest pick’em fantasy sports sites have adjusted their games accordingly. Fans can read more about them below:
Alabama Fantasy Sports Law
Alabama passed legislation to legalize and regulate fantasy sports in 2019, ending a three-year stretch during which all DFS apps were prohibited from serving residents.
The Fantasy Contests Act (AL Code §§ 8-19F-1-10) established a licensing requirement for DFS operators, instituted some basic consumer protection regulations, and implemented a privilege tax on operators.
Key points from the Alabama DFS law cover the following topics:
Legal History of DFS in Alabama
Alabama prohibited daily fantasy sports contests for a three-year period from 2016 through 2019.
Before 2016, fantasy sports apps offered the next-best thing to sports betting in Alabama. State law did not explicitly criminalize fantasy sports contests, so all major DFS operators served Alabama residents.
That changed in 2016 when Attorney General Luther Strange issued an opinion that DFS contests constitute illegal gambling under Alabama law.
He also sent cease-and-desist letters to FanDuel and DraftKings, ordering them to halt all DFS operations immediately.
The AG’s decision to ban DFS apps was a surprise, as the Alabama Supreme Court had previously ruled that fantasy sports contests are legal because they are based on skill.
That case ruling likened daily fantasy sports to crane machines, which also involve risking real money on a game that’s part luck and part skill.
As a result, all fantasy sports sites and DFS apps exited the Alabama market in 2016 but returned in 2019 when the new law took effect.
Alabama Fantasy Sports FAQ
Wes Burns has more than a decade’s worth of experience as a writer, researcher and analyst in the legal gambling industry and is co-founder of BettingUSA.com. As a former professional online poker player, Wes approaches his work from the viewpoint of players.