New Jersey Passes Daily Fantasy Sports Bill
Under a new law signed by Governor Chris Christie on Thursday afternoon, the controversial game will be regulated by the state’s Division of Consumer Affairs and not by the Division of Gaming Enforcement.
This is a big win for the industry’s two biggest players, FanDuel and DraftKings. The two beleaguered companies are locked in a desperate fight for survival, a fight which in which victory depends on operating in a market where daily fantasy sports are not considered gambling.
As an added bonus for the companies, the decision to legalize daily fantasy sports in the Garden comes right on the eve of the NFL football season. In the US, football accounts for the lion’s share of the daily fantasy sports market.
As written, the new law lays down a quarterly tax of 10.5 percent on a daily fantasy sports operators’ gross revenue.
New Jersey politicians are always optimistic about the revenue potential of new gambling games and this case is no exception. The bill’s sponsors estimate that New Jersey facing daily fantasy sports business will generate about $6.6 million in revenue for the state each year.
Assemblyman Vince Mazzeo of Atlantic City touted the bill in a statement to NorthJersey.com saying:
“The time is right for New Jersey to enter the fold with regulations aimed at providing strong consumer protections for our residents. This not only protects consumers, but promotes a positive business environment for fantasy sports operators and their thousands of New Jersey customers.”
As part of the new law, casino and race track operators will be able to offer daily fantasy sports games to their customers.
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