New Jersey Fantasy Sports Regulations Coming Soon?

Print Friendly, PDF & Email

April 5, 2017

fantasy-sportsThe New Jersey Assembly’s Appropriations Committee has passed a bill aimed at establishing fantasy sports regulations to govern fantasy sports contests and their operators within the State.  Passage of the proposal in the Committee ensures advancement to the full Assembly for prospective debate and vote.

What are some of the key components of New Jersey’s proposed fantasy sports regulatory regime?

The requirements contained in New Jersey’s proposed legislation to establish fantasy sports regulations include many obligations imposed by similar regulatory schemes enacted across the country including, but not limited to, the following:

  • Permitting requirements;
  • Prevention of employees from participating in contests and sharing confidential information with third parties;
  • Requirements that operators must verify that participants are at least 18 years of age;
  • Providing participants with the ability 999to restrict themselves from participating in contests;
  • Disclosure of the number of entries that a participant may submit to a single contest and taking steps to prevent a participant from exceeding that number;
  • Prohibition against offering contests based upon high school athletics;
  • Mandatory segregation of participants’ entry fee funds from operational funds;
  • Fines for violations of the regulations in amounts up to $50,000 for individuals and up to $200,000 for entity-violators;
  • Requirements that operators must contract with third parties to conduct annual audits.

The proposal envisions enforcement authority vested with the Division of Consumer Affairs in the Department of Law and Public Safety.  Additionally, the bill provides for a quarterly tax to be levied upon the gross revenue earned in New Jersey, calculated at 10.5% of such quarterly gross revenue.

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

The fantasy sports industry, and the laws and regulations that govern it, continue to grow and evolve.  New Jersey is just the latest State whose legislators and/or regulatory authorities have sought to intervene in the fantasy sports space.  Accordingly, it is essential that fantasy sports operators continue to maintain a watchful eye over the developing legal landscape.  To effectively navigate this rapidly changing regulatory framework, operators should 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, or call us at (212) 246-0900.

The material contained herein is provided for informational 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.

Attorney Advertising

Mississippi Enacts Fantasy Sports Legislation

Texas Lawmaker Introduces Fantasy Sports Bill: Fantasy Sports Lawyers Scrutinize the Details

Maryland Fantasy Sports Regulations Take Effect

David O. Klein

David O. Klein

David Klein is one of the most recognized attorneys in the telemarketing, 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.

Schedule a Call
In The Know

Trending Topics

Creating a Viral and Legally Compliant "Pin to Win" Contest- Klein Moynihan Turco

Creating a Viral (And Legally Compliant) “Pin to Win” Contest

Print Friendly, PDF & Email

We have frequently written about the marketing benefits associated with the use of promotional contests and sweepstakes.  Promotional contests and sweepstakes often appear on social media platforms, which provide companies with a free and effective means to increase the number of consumers participating in their respective contests. While companies must

Facebook Decision defines a TCPA Autodialer- Klein Moynihan Turco LLP

Facebook Aftermath: Courts Clarify Definition of TCPA Autodialer

Print Friendly, PDF & Email

On April 1st, the U.S. Supreme Court released its opinion in Facebook, Inc. v. Duguid, marking a newly clarified definition of “autodialer” within the meaning of the Telephone Consumer Protection Act (“TCPA”). In the two weeks that followed, two federal courts have directly addressed the definition of TCPA autodialer as

Critical Role that TCPA Plays in Outbound Telemarketing- KMT

The Critical Role that the TCPA Plays in Outbound Telemarketing

Print Friendly, PDF & Email

If you’re running any sort of outbound telemarketing campaign – phone calls, voicemail drops, or text messaging – you need to understand the Telephone Consumer Protection Act (TCPA) and its enabling regulations. Call center operators are not the only businesses that employ outbound telemarketing to reach out to consumers. Using

How to Use Promotional Marketing the Legal Way: Klein Moynihan Turco LLP

How To Use Promotional Marketing The Legal Way

Print Friendly, PDF & Email

The use of promotional contests, games and sweepstakes marketing can be a dynamic and cost-effective way to increase sales, build a database of interested consumers and otherwise increase brand awareness and buzz. Consumers are more easily attracted to your marketing message by the opportunity to win prizes than with more

Share on facebook
Share on google
Share on twitter
Share on linkedin