DFS legislation makes progress in New Jersey
Bill seeking to regulate and tax daily fantasy sports passed out of Senate committeeÂ
A bill that would allow New Jersey to regulate and tax daily fantasy sports (DFS) was unanimously approved by a Senate Committee yesterday. [private]
The bill, SB 1927, was introduced by Senator Jim Whelan last week and passed through the Government, Wagering, Tourism and Historic Preservation Committee with a 5-0 vote.
âAs daily fantasy sports continues to gain popularity, many states are struggling with how to efficiently regulate it,” Whelan said in a statement.
âOur bill shows you can have a regulatory model in place that protects consumers while at the same time not overburdening fantasy sports companies.â
âThe reality is that DFS isn’t going anywhere. We can either do nothing, or we can help attract these fantasy sports companies to New Jersey and protect consumers in the process,â he added.
Under the bill, operators would be required to apply to the Department of Law and Public Safety for permit, and to have at least one server located in the state.
DFS providers will be forced to pay an annual registration and renewal fee, equal to a 9.25% tax on gross gaming revenue.
The bill would allow DFS operators already live to continue operating while they apply for a license, while those not already live will have to wait until they receive a permit.
Operators must prohibit their employees and their immediate family members living in the same house playing in contests offering a cash prize greater than $5.
Player protection measures must also be in place, including self-exclusion protocols, age verification, and segregated player funds.
The bill now heads to the Senate Budget and Appropriations Committee for consideration.