HB1349

House Bill 1349 establishes a legal framework for 'paid esports tournaments' in Arkansas. It explicitly declares that such tournaments, when conducted in compliance with the new chapter, do not constitute gambling under state law and are therefore exempt from existing gambling statutes. The bill defines an 'esports tournament organizer' and outlines specific criteria for what qualifies as a 'paid esports tournament,' emphasizing that winning outcomes must be based on the skill and knowledge of the competitors rather than chance. It excludes house-banked games, casino-style gambling, and racing-based games from this definition. Furthermore, the bill mandates that income earned by competitors and organizers from these tournaments remains subject to state income tax. Finally, it explicitly clarifies that the legislation authorizes the tournaments themselves but does not legalize wagering on the outcomes of those tournaments.