Relating to the regulation of fantasy contests; requiring an occupational license; imposing an administrative penalty; authorizing fees; imposing a tax.

HB 3980 regulates fantasy sports contests in Texas by requiring operators to obtain a business license and pay fees. It imposes a tax on "adjusted gross fantasy contest receipts" (calculated as entry fees collected from Texas participants minus prizes paid), with the tax rate based on the percentage of total entry fees from Texas residents. The bill also authorizes administrative penalties for operators who fail to comply with licensing, tax, or fee requirements. This directly affects businesses running online fantasy sports contests, not participants or regular sports betting.