New Jersey is one of just three states that regulates online gambling and poker. It is trying to legalize sports betting through the courts.
Now, it could join a handful of other states that have passed laws formally legalizing and regulating daily fantasy sports.
What NJ is doing with DFS
The latest? This week, the Senate Budget and Appropriations Committee passed S 1927, which was introduced originally back in March by Sen. Jim Whelan.
It’s the second committee vote the bill has made it through — it was passed unanimously by the State Government, Wagering, Tourism and Historic Preservation Committee in March, as well. New Jersey has been considering the industry and how to deal with since a hearing held late last year.
Now, the legislation heads to the full Senate.
What the DFS bill does
The legislation sets up a licensing regime for DFS operators — or casinos that want to offer fantasy sports — creates fees for registration, and introduces consumer protections for daily fantasy sports users.
On the taxation side, per the Press of Atlantic City:
It requires the fantasy sports sites to pay an 9.25 percent of their yearly gross revenue in New Jersey as a “registration fee …the same tax rate on brick and mortar casinos,” Whelan said Monday.
The New Jersey Law Journal reports that the DFS industry, and its two largest operators — DraftKings and FanDuel — oppose the legislation as currently written.
Almost all DFS operators serve New Jersey already in an unregulated environment. So the bill, if passed, would generate some revenue for the state and provide oversight for the industry.
Who else has acted on DFS laws?
So far, four states have passed legislation dealing with DFS: Virginia, Indiana, Mississippi and Tennessee. Colorado and Missouri have passed laws that are awaiting a signature from the governors of those two states.
The federal government hasn’t moved to take action, although Rep. Frank Pallone (D-NJ) was the impetus behind a DFS hearing in Congress.