There are now 16 states in the U.S. with daily fantasy sports (DFS) laws on the books after New Jersey Gov. Chris Christie signed a bill on Thursday, August 24.
In early July, a bill that legalized and regulated paid-entry fantasy sports was passed by the Garden State’s legislature. It has, however, sat dormant in the governor’s office since then. That was until Thursday when Christie decided to enact A3532.
Not much will change in New Jersey though, as the majority of DFS operators were already serving the state. DFS had already been declared legal under existing state law by gaming regulators
Going forward, any operator looking to be licensed in the state will have to apply via the New Jersey Division of Consumer Affairs. Racetracks and casinos that partner with fantasy sports providers will have to do the same.
The Department of Gaming Enforcement, which regulates casino gaming, will not have a hand in fantasy sports regulation. (READ SO: THE MERGE OF TWO GIANTS WILL COME TRUE ON 2017)
The bill does not prohibit fantasy sports based on collegiate sports games. It declares paid-entry fantasy sports a game of skill and states that players must be 18 years of age or older. Operators will be subject to a 10.5 percent tax on gross revenue derived from the state’s DFS players.
A number of consumer protections are also instituted by the law, such as mandatory separation of player funds from operating funds, prohibiting employees of DFS operators from play and instituting responsible gaming protocols. (READ SO: AMERICAN GAMING ASSOCIATION AGA, FIRST TIME EVER THAT NEW CODE OF CONDUCT FOR RESPONSIBLE GAMING INCLUDES ONLINE GAMING)
Assemblyman Ralph Caputo, D-Essex, said, “This puts important consumer protections in place that were missing in the fantasy sports industry. This helps keep the games honest and consumers protected”
