On Monday, a majority of the New Jersey Assembly approved legislation that would regulate daily fantasy sports and levy taxes on operators.
NJ A3532, which would legalize paid-entry fantasy contests in the state, was approved by a 56-15 vote with three members abstaining.
Details Of NJ A3532
Sponsored by several Democratic Assembly members including Ralph Caputo, Vincent Mazzeo, and Paul Moriarty, the bill is not groundbreaking when it comes to the points that are proposed. In general, all states with legalized DFS have used a similar format when it comes to introducing legislation. You can read the full bill here, but here are the main components of the proposed bill: http://www.njleg.state.nj.us/bills/BillView.asp?BillNumber=A3532
The Division of Consumer Affairs would be given regulatory power over issuing permits and licensure to casinos, racetracks, and DFS operators.
Daily Fantasy Sports operators would be required to pay a 10.5% quarterly fee on all gross revenues.
Various consumer protections must be implemented, such as ensuring that participant funds are held separately from operating funds and that all participants are 18 or older.
If the bill were to pass, it would not put any restrictions on the season-long fantasy sports contests held in social settings among friends, coworkers, etc. Sponsors of the bill believe that NJ A3532 is more than sufficient from an economic standpoint, but has also been written with actual participants in mind.
In discussing the consumer protections aspect of the bill, Assemblyman and sponsor John Burzichelli stated that it, “…ensures that people can enjoy fantasy sports without being taken advantage of.”
What’s Up Next For DFS In NJ?
Though NJ A3532 passed by a large margin, it will now need to be approved by New Jersey’s Senate. There is currently a bill moving through the Senate that would tax operators 9.5% rather than the suggested 10.5%.
New Jersey has already started developing their own fantasy sports products, rather than leaving it up to giants like FanDuel and DraftKings. Their new FastPick fantasy sports parlay game is slated to be released at Atlantic City’s Resorts Casino by the end of the month. The product allows players to select players for anywhere between 3 to 10 matchups. Participants can then pick the players that they believe will accumulate the most points, and just as with any other parlay bet, all selections must be correct in order to win. The goal of the product is to continue to blur the lines of fantasy sports and sports betting to help normalize the overall perception of betting on sports.
All lights seem to be green on the fantasy sports front for sports betting in New Jersey, and after heading to the Senate the bill will need to be approved by Governor Chris Christie. This sheds some positive light on the state after the office of the Solicitor General filed a brief on Wednesday urging the Supreme Court not to hear the NJ sports betting case.