New Jersey Fantasy Sports Law Enacted

August 28, 2017

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New Jersey recently became the latest state to legalize fantasy sports when Governor Chris Christie formally signed newly-passed legislation into law.  One of the minority of states to allow casino gambling, New Jersey’s legalization achievement is a notable development given that gaming interests have long been an opponent of New Jersey fantasy sports operations.

What should operators know about the New Jersey fantasy sports law?

We have previously blogged on the basic requirements of the New Jersey fantasy sports regulatory regime.  New Jersey’s brand of fantasy sports regulations also envisions treating operators as two distinct classes: casinos and operators that are not casinos.  Specifically, casinos are exempt from the requirement to pay a quarterly operations fee equal to 10.5% of gross revenue generated from fantasy sports contests in the State.   However, casino and non-casino fantasy sports operators alike are required to maintain a presence in Atlantic City.  Specifically, all casino equipment used to offer fantasy sports activities must be physically located in Atlantic City, with limited exceptions, while non-casino operators must maintain at least one server in Atlantic City to conduct their fantasy sports operations.

Operators conducting business in New Jersey as of November 22, 2017, will be permitted to legally operate in the State for up to 60 days after applications for permits are made available by the Division of Consumer Affairs.  Likewise, such New Jersey fantasy sports operators will be permitted to continue operating in the State while their applications are pending, provided that applications are submitted during that 60-day period.

Evolution of New Jersey Fantasy Sports Regulations and the Ongoing Need for a Fantasy Sports Lawyer

New Jersey is the latest example of states across the country that have taken action in the fantasy sports space.  The overall trend of such intervention has been to legalize and regulate the industry.  Nevertheless, each state’s fantasy sports regulations are unique in one way or another.   If operators are to effectively navigate this rapidly-changing regulatory framework, it is imperative to work closely with knowledgeable fantasy sports lawyers to regularly review their respective contest platforms, entry fees, prize structures and marketing campaigns.

If you are interested in learning more about this topic or pursuing a fantasy sports venture, please e-mail us at info@kleinmoynihan.com, or call us at (212) 246-0900.

The material contained herein is provided for information purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney.  Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney. 

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David Klein

David Klein is one of the most recognized attorneys in the technology, Internet marketing, sweepstakes, and telecommunications fields. Skilled at counseling clients on a broad range of technology-related matters, David Klein has substantial experience in negotiating and drafting complex licensing, marketing and Internet agreements.
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