What Could This Fantasy Sports Bill Mean for New Jersey?
The New Jersey Assembly recently passed legislation that would regulate daily fantasy sports games.Analysts project that taxing the growing industry could generate annual revenue of $6.6 million.
The New Jersey fantasy sports bill, Assembly Bill No. 3532, would regulate large-scale fantasy sports operators like DraftKings and FanDuel. It would not apply to leagues between friends and family. Daily fantasy games differ from traditional season-long fantasy sports leagues because the daily fantasy winners are determined on a daily basis based on the statistics generated by sports players during that day’s games. While individual fantasy players typically only bet a few dollars, the sheer number of fantasy players participating on national websites can generate prizes reaching millions of dollars.
Regulatory Scheme Under Assembly Bill No. 3532
Sports betting is generally illegal under federal and state law. However, because fantasy sports are considered a game of skill rather than simply luck, they are not considered gambling.
Assembly Bill No. 3532 would expressly legalize “fantasy sports activity,” which is defined as a “contest with an entry fee in which a participant owns or manages an imaginary team and competes against other participants or a target score for a predetermined prize with the outcome reflecting the relative skill of the participants and determined by statistics generated based on performance by actual individuals participating in actual competitions or athletic events.”
As stated in the Bill, the goal of the proposed legislation is to “protect participants and promote a positive business environment in the conduct of fantasy sports activities.” Accordingly, operators would be required to obtain a permit and meet several other compliance obligations.
Fantasy sports operators would be eligible to obtain a permit so long as the following conditions are satisfied:
The outcome of fantasy sports activities must be determined by statistics generated based on the performance of actual individuals participating in real competitions or athletic events;
All prizes offered to participants must be established and disclosed in advance;
The outcome must not be based solely on the performance of an individual athlete, or on the score, point spread, or any performance of a single real team or combination of real teams;
A fantasy sports operator may permit participants to use a mobile account or a participant deposit account;
A casino licensee may partner with, or enter into a contract with, one or more fantasy sports operators to offer fantasy sports activities; and
A participant in a fantasy sports activity must be at least 18 years of age.
More requirements under Assembly Bill No. 3532
The proposed fantasy sports bill also requires fantasy sports operators to use commercially reasonable practices to prohibit the sharing of statistical information with third parties that could impact a fantasy sports activity until that information is publicly available, and contract with a certified public accountant to perform a financial audit of the operator to ensure compliance with the law. The proposed legislation also mandates that operators segregate participants’ funds from operational funds and maintain certain monetary reserves and financial instruments in the amount of the deposits in participants’ accounts.
Operators would also be required to adopt procedures to ensure that any prohibited participant does not participate in fantasy sports activities and that all participants are at least 18 years of age. To help address the potential for gambling addiction, operators must offer individuals the ability to restrict themselves from participating in fantasy sports activities and take reasonable steps to prevent a participant from exceeding the number of entries a participant may submit to each fantasy sports activity.
The proposed legislation also provides for the imposition of fines on fantasy sports operators who fail to obtain a permit. Fines may also be imposed on anyone who knowingly tampers with software, computers, or other equipment used to conduct fantasy sports activities to alter the payout.
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know
Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business
In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
How to Reduce Legal Risk as Your New Jersey Business Grows in 2026
For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]
Crypto Investor Protection: SEC and CFTC Enforcement Trends
Crypto investor protection continues to evolve, with the SEC and CFTC investing resources and coordinating more closely to uphold regulatory standards. Whether you’re a retail investor, an institutional trader, or part of a crypto startup, understanding enforcement trends is essential for navigating this dynamic and high-stakes regulatory environment. Crypto Is No Longer the Wild West […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
