A bill to regulate daily fantasy sports (DFS) in New Jersey has progressed through the state legislature and is set for a second reading following its approval by the Senate State Government, Wagering, Tourism & Historic Preservation Committee.
The bill put forward by Senator Jim Whelan, S-1927, was approved by all members of the committee and now heads to the Senate Budget and Appropriations Committee for consideration.
Whelan’s legislation would see the Department of Law and Public Safety regulate daily fantasy sports in the state, with operators required to pay a tax of 9.25 percent of gross revenue, the same rate paid by land-based casinos.
Violations of the regulations would see operators or individuals face fines of up to $200,000.
Employees of DFS companies and their family members would be banned from entering contests and sharing insider information.
“As daily fantasy sports continues to gain popularity, many states are struggling with how to efficiently regulate it,” Senator Whelan commented.
“Our bill shows you can have a regulatory model in place that protects consumers while at the same time not overburdening fantasy sports companies.
“The reality is that daily fantasy sports isn’t going anywhere,” Whelan concluded. “We can either do nothing, or we can help attract these fantasy sports companies to New Jersey and protect consumers in the process.”