New Jersey’s appeal to regulate and tax the daily fantasy sports (DFS) betting industry finally found its way to pass through the state Legislature with a majority-vote, which send the bill directly to the Gov. Chris Christie’s desk for signature.
On Friday, 30th June, the Senators voted in favor of a bill, that aims to regulate the DFS betting industry and tax it, after being approved by the state Assembly. Now, the bill is also known as A-3532 is heading to the Gov. Chris Christie’s desk, who needs to sign it before it is added to New Jersey’s legal framework.
Once the bill comes into effect, all the DFS operators will need to apply for a license to operate and pay 10.5% of the sports gross gaming revenue (GGR). This will increase the flow of money to the state’s coffers, allowing the locals to reap up to $6.6 million annually in revenues only from operational taxes and licenses. Specialists explain that this will give a boost to the threadbare New Jersey’s economy, which is in need of a financial injection.
The bill also includes some more limitations, which are directed to the responsible gambling aspect. According to the wordings in it, residents under the age of 18 are not allowed to participate in any wagering practices.
Moreover, licensed casino operators are allowed to team up with DFS operators, but the servers of the casino-operated fantasy sports site should be placed in Atlantic City. For sites that are operated elsewhere, but New Jersey, the bill obliges the operator to place at least one of the servers in Atlantic City.
The school sports activities are also excluded from the list of contests, which DFS operators will be allowed to offer. An interesting matter of fact is that the DFS is referred to as a game of skill than a game of chance, which automatically means that Division of Consumer Affairs will perform the function of a watchdog, instead of Division of Gaming Enforcement.
The bill was voted by the Senators only a couple of days after the U.S. Supreme Court agreed to include the NJ’s appeal to remove the restrictions on DFS betting in its discussion agenda. Having in mind that the DFS betting has significantly grown in popularity over the recent years, such restrictions appear to be unable to meet to the needs of the modern generation.
It was explained that to keep the DFS betting practices unregulated means that the players will continue to place their bets illegally, which is in detriment of the state as the leakage of money to the shadow sector will not only continue, but also increase.
Another important benefit from the enactment of the bill is for the players, who will be able to enjoy a safe and fair gaming environment.
New Jersey’s attempts to regulate the DFS industry has started as far back as 2011. It has travelled a long and bumpy road until it is finally marching to enter the law books. The final step before the bill officially becomes a law is the signature of Gov. Chris Christie, who outspokenly expressed his support to the legalization of the sports betting industry.