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Rules office tentatively clears strike-everything amendment to HB2328 on fantasy sports; flags tribal compact complexity
Summary
The committee's rules attorney said the strike-everything amendment to HB2328, which addresses fantasy sports contests and event wagering definitions, is likely constitutional and in proper form but noted unresolved legal questions about the state's tribal gaming compact and said staff research is not yet complete.
The strike-everything amendment to House Bill 2328 alters statutory definitions for fantasy sports contests and event wagering, the committee heard. Rules attorney Holder told the committee gaming-related measures require examination for their interaction with the state's tribal gaming compact.
"The compact includes an exclusivity clause," Holder said, describing the compact as an agreement that allows tribes to conduct Class III gaming on tribal lands under specified restrictions and that, in return, the state receives a portion of proceeds. She said an exception added to the compact in 2021 for off-reservation fantasy sports and off-reservation event wagering "weighs toward a conclusion that the changes made in the strike-everything to House Bill 2328 are permissible." Holder added that the office had not completed all of its legal research because of crossover-week scheduling and the compacts' complexity: "To be candid, mister chairman, and with the committee ... we haven't gotten to fully complete our research on this bill. ... If our research gives us a different conclusion, we will definitely let the committee know. But as of now ... we do believe that the bill ... is constitutional and likely not contrary to that exclusivity clause, and the bill is otherwise in proper form."
Representative Mathis asked whether reasonable arguments exist that the exclusivity clause could create concerns; Holder agreed the issue is "incredibly complicated and complex" and said it is a fair argument to raise because a strong exclusivity clause could have significant consequences for tribal obligations under the compact.
The committee voted to recommend HB2328 is constitutional and in proper form. The roll call recorded Representative Carbone voting Aye; Representative Contreras voting Nay; Representative Mathis voting Nay; Speaker Montenegro voting Aye; Representative Willoughby voting Aye; Vice Chairman Carter voting Aye; Chairman Hendricks voting Aye. The committee reported a tally of 5 ayes, 2 nays and 1 absent and recommended the measure is constitutional and in proper form.
Holder told the committee staff will continue research and notify members if the office reaches a different legal conclusion.
