Print

NJ Governor Christie signs bill to regulate, tax daily fantasy sports

A 16th state Thursday enacted a law regulating daily fantasy sports.

It wasn’t Connecticut.

New Jersey Gov. Chris Christie signed into law a measure to regulate and tax daily fantasy sports, a move that could generate $6.6 million annually for the Garden State's coffers.

Connecticut lawmakers considered House and Senate bills legalizing daily fantasy sports in 2016, neither of which came to a vote in either chamber. State Attorney General George Jepsen had warned that passage of such legislation could jeopardize the state’s revenue-sharing agreements with the casino-owning Mashantucket Pequot and Mohegan tribes.

A daily fantasy sports bill introduced early in the 2017 legislative session in Connecticut failed to get a hearing.

The New Jersey law imposes a 10.5 percent tax on the winnings of companies that offer daily fantasy sports.

“The law establishes multiple layers of oversight, placing New Jersey at the forefront of consumer protection nationally, and creating a new source of tax revenue with major potential for growth in the state," Marc LaVorgna, a spokesman for DraftKings and FanDuel, the two leading fantasy sports providers, said in a statement.

The contests allow people to deposit money in accounts, create fantasy rosters of sports teams by selecting real players and then compete against other contestants based on the statistical performances of those players.

The law enables daily fantasy sports providers to partner with a casino or racetrack, but doesn't require they do so.

Mohegan Sun enables fantasy sports players to compete for noncash prizes, providing access to FanDuel’s website through www.mohegansun.com/fantasysports. Players can win such prizes as Mohegan Sun hotel stays, admission to entertainment events at the casino and free meals at casino restaurants.

Both the Mashantucket Pequot and Mohegan tribes have indicated they support the legalization of daily fantasy sports in the state.

http://www.theday.com/business/20170824/new-jersey-governor-signs-bill-legalizing-daily-fantasy-sports