With sports betting now legal, growing and paying taxes in New Jersey, The Garden State’s authorities have drawn up a set of rules for its operators of Daily Sports Fantasy (DSF) gaming and is planning to start charging them a sports fantasy fee based on turnover.
The more money generated by DSF operators, the more they will have to pay for a permit; that’s the main principle the state’s Division of Consumer Affairs is planning to establish.
The sports fantasy fee begins at $5,000 for operators with revenues of up to $49,999. It increases to $50,000 for operators who have gross revenues of $250,000 and more.
In addition, the state will also charge all DSF operators a flat $500 permit fee.
Unlike sports betting, daily sports fantasy gaming has never been illegal in the US. So it had not been subject to a special gaming taxes.
A Brief History Leading to the Sports Fantasy Fee
Sports betting appeared in New Jersey shortly after the State won the high profile case in the US Supreme Court. This ended a two-decade prohibition of sports betting in the US. Now the law allows individual states to decide for themselves whether they wish to allow legalized sports betting or not.
After their court battle, it was not surprising that New Jersey quickly allowed sports betting. Something which they introduced both online and via brick and mortar Casinos and racing tracks.
The first sports wager was placed with the William Hill sportsbook at a betting window at Monmouth Park in early July and a month later, DraftKings, better known as the US’s biggest sports fantasy operator with something like 9million registered users, took New Jersey’s first online mobile sports wager on it newly-launched Sportsbook.
Not too long afterwards, FanDuel, the other US sports fantasy giant operating out of New Jersey, was among the total of eight new sportsbook companies that in quick succession followed DraftKings lead and launched sports wagering operations in New Jersey.
The other six were Play Sugarhouse, BetStars, 888sports, William Hill, MGM, and Caesars.
Following are the sports fantasy rules New Jersey are planning to introduce some time after January 18. January 18 is also the deadline for the public to submit comments.
They can submit them in writing to Paul R. Rodriguez, the Acting Director of the Division of Consumer Affairs at PO Box 45027, Newark, New Jersey 07101 or electronically to the Division’s website.
The new Sports Fantasy Rules
All fantasy sports bets would have to be based on “actual individuals participating in real competitions or athletic events.
Those betting on sports fantasy games are to own one username and one account.
Operators not allowed to provide credit for sports fantasy players and the players not allowed to transfer funds to other players.
Fantasy sports operators would have to provide proof that they properly maintain their equipment.
Any equipment used in fantasy sports must be located in Atlantic City. Just as state regulators allow to inspect casino table games and slot machines, the new rules would allow the Division of Consumer Affairs to inspect the fantasy sports betting facilities and their computer servers.
The state would require annual audits and restrict the operators from merging money from fantasy accounts with other gaming accounts i.e. sports betting, poker and casino accounts.
Statistical information that could affect fantasy sports can’t be shared with third parties until it is publicly available.
The proposal also bans fantasy bets on high school sports. The New Jersey law that allows legal sports betting also bars all wagering on high school sports and athletes
Operators will be required to set up procedures to prevent underage bettors and to prevent people barred from gambling at casinos from betting on sports fantasy games.
Those running the fantasy sports operations would not be allowed to bet themselves on their own games.
A process to file complaints must be set up and the complaints must be responded to within 10 days. Complaints must also be saved for seven years and be available for review by the Division of Consumer Affairs if requested.