New Jersey regulates daily fantasy sports
The governor of New Jersey signed the bill that regulates and taxes daily fantasy sports activity in the state.
US.- New Jersey has become the sixteenth state in the Unites States to regulate daily fantasy sports, as its Governor Chris Christie signed into law a bill that sets guidelines for companies that operate in the territory. The DFS operators will have to pay a 10.5 percent tax on their winnings to the state.
Back in July, the Bill A3532 received the necessary votes to be implemented from the Legislature of the state. The bill sponsored by Senator Jim Whelan, D-Atlantic, who passed away earlier this week, has turned New Jersey into one of the 16 states that feature a regulated daily fantasy sports market. As nj.com reported, the nonpartisan state Office of Legislative Services estimated that the passed legislation is set to generate at least US$6.6 million in revenue for New Jersey each year.
Marc LaVorgna, a spokesperson for both DraftKings and FanDuel, said: “Today, Governor Christie signed into law a bill establishing a comprehensive, lasting regulatory framework for fantasy sports in New Jersey. By taking this action, New Jersey is now the sixteenth state to enact a law protecting fantasy sports fans and guaranteeing their right to play the games they love, while establishing rules to protect consumers as the industry grows and ensure the continued integrity of fantasy sports contests.”
“The law establishes multiple layers of oversight, placing New Jersey at the forefront of consumer protection nationally, and creating a new source of tax revenue with major potential for growth in the state,” added LaVorgna.
Moreover, the bill establishes DFS as a game of skill and puts it under the oversight of the Division of Consumer Affairs in the Department of Law and Public Safety. Operators who want to offer their services in New Jersey have to apply for a permit.
Whilst the law details consumer protection measures, like making operators separate player funds from operational funds, it doesn’t prohibit fantasy sports based on college games, which most of the states have banned in the past.
