Gov. Chris Christie today signed legislation to regulate and tax daily fantasy sports enterprises.
While New Jersey residents already participate in large-scale commercial fantasy sports activities, it was not expressly authorized and therefore not regulated. Fantasy sports companies have 60 days to apply for a permit, but may continue doing business in New Jersey while the application is processed.
Among other provisions, the new law:
- allows the Division of Consumer Affairs (DCA) in the Department of Law and Public Safety to issue permits to fantasy sports operator applicants;
- imposes a quarterly operations fee of 10.5 percent of gross revenue on fantasy sports providers;
- prohibits participation by individuals under the age of 18 and those with financial interests in the fantasy sports industry;
- allows fantasy sports companies to partner with casinos race tracks; and
- imposes fines on actions that would tamper with the fantasy sports operations or affect the outcome of the activities.
The Office of Legislative Services estimates that the bill will produce $6 million a year in additional state revenue.
In fantasy sports, people deposit money in accounts with a provider and create fantasy rosters of sports teams by selecting real players. They then compete against other contestants based on the statistical performances of those players.