New Jersey to Enact Fantasy Sports Law?

May 24, 2017

fantasy-sports-lawThe New Jersey State Assembly has moved the State one step closer to enacting a fantasy sports law, passing a bill to impose regulations governing fantasy sports contests and their operators within the State.

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

As we previously noted when the bill had initially been voted out of the Appropriations Committee, the proposed fantasy sports law regulations include, but are 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 to 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 violation of the regulations in amounts up to $50,000 for individuals and up to $200,000 for entity-violators; and
  • The requirement that operators contract with third parties to conduct annual audits.

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.  A companion bill currently working its way through the State Senate proposes a tax levied at a rate of 9.25% on gross revenue.

Continuing Evolution of Fantasy Sports Law and the Ongoing Need for a Fantasy Sports Lawyer.

As New Jersey makes progress in its efforts to regulate the fantasy sports space, it is important to remain mindful that the fantasy sports industry, as well as the laws and regulations that govern it, are constantly evolving.  New Jersey is only the latest state to see fantasy sports regulation progress towards becoming law.  Accordingly, it is essential that fantasy sports operators continue to maintain a watchful eye over the developing legal landscape.  Operators should work closely with knowledgeable fantasy sports lawyers to regularly review their respective contest platforms, entry fees, prize structures and marketing campaigns in order to deftly navigate the rapidly-changing regulatory environment.

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 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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