Signed by Governor Chris Christie

Vote Smart's Synopsis:

Vote to pass a bill that establishes regulations on the fantasy sports industry.

Highlights:

• Defines fantasy sports activity as any simulated activity or contest in which a participant owns or manages an imaginary team and competes against others or a target score for a prize based on statistics generated by the performance of actual individuals participating in actual competitions (Sec. 2).

• Specifies that fantasy sports are not considered a form of gambling (Sec. 1).

• Requires fantasy sports operators to apply for a permit to conduct fantasy sports activities (Sec. 2).

• Specifies that fantasy sports operators may legally operate for up to 60 days after permit applications are available, during which time they should apply for a permit and may continue to operate while the permit is pending, or they will have to cease operations after the 60 day period (Sec. 2).

• Specifies that a permit will be granted under the following conditions (Sec. 2):

• The outcome will be determined by statistics generated from actual individuals performing in actual competitions;

• The prizes will be determined in advance;

• The outcome will not be based solely on a single athlete, score, point spread, or team or combination of teams;

• The participants in the fantasy sports activity will be at least 18 years old; and

• The participants may use a mobile account or participant deposit account.

• Requires fantasy sports operators to do the following (Sec. 2):

• Have procedures in place to ensure prohibited participants and those under 18 do not participate;

• Use reasonable practices to prohibit the sharing of statistical information with third parties that could affect a fantasy sports activity until that information is made public;

• Prohibit fantasy sports based on high school sports;

• Offer individuals the ability to restrict themselves from participation and take reasonable steps to prevent these individuals from participating;

• Contract with an accountant to perform a financial audit to ensure compliance and submit the report to the division annually;

• Disclose the number of entries a participant may submit and take steps to ensure participants do not exceed that number; and

• Separate participants’ funds from operational funds and maintain protections for the participants’ funds.

• Specifies that a prohibited participant is any individual with access to private information about fantasy sports, any athlete whose performance may determine the outcome of a fantasy sport, any employee of a team or league in the sport in which that individual is associated, or any sports agent associated with any sport used for fantasy sports (Sec. 2).

• Requires operators to pay 10.5% of fantasy sports gross revenue to the Division of Consumer Affairs on a quarterly basis (Sec. 2).

• Specifies fines and penalties for persons who violate this the provisions of this bill (Sec. 2).

• Specifies that the Division of Consumer Affairs in the Department of Law and Public Safety are responsible for the enforcement of fantasy sports regulations, including the issuing of permits and collection of permit fees (Sec. 2).

Full Bill Text