New Jersey Sets Tougher Rules For Fantasy Sports

New Jersey Attorney General Gurbir S Grewal and the Consumer Affairs Division have revealed the implementation of new rules for Garden State fantasy sports activities, which include measures to protect minors.

The new framework follows a 2017 law requiring fantasy sports operators to receive Division licences and other standards to protect players at the new online sports betting frontier in New Jersey.

Operators are required to adopt procedures to ensure that fantasy sports activities do not involve anyone under the age of 18. Advertising in magazines or media targeted specifically at children, at K-12 schools and at sports facilities used solely for student sports activities is also forbidden. In fact, all money held in the account must be reimbursed if an account is found to have been generated by a minor.

The Division also took legislative steps to protect other players in fantasy sports, including reducing the debt risk as a result of their activities. To this end, no credit may be given to any individual by operators. We also need to provide people with the ability to restrict themselves if they choose to engage in fantasy sports activities.

Certain consumer protections in the new rules include a provision that fantasy sports operators maintain adequate processes for addressing participant grievances and limits on participation by staff, judges, administrators and fantasy sports operators owners.

Operators are also required to maintain adequate reserves to enable them to meet their financial obligations to participants. The new rules will complement the statutory requirements that the Division has already started to enforce.

The Division took its first action to enforce the fantasy sports law in August 2019 when it signed an order of consent with SportsHub Games Network Inc. The corporation agreed to pay a civil penalty of $30,000 after the Division found that it had illegally run a fantasy sports platform without a licence and failed to disclose clearly and conspicuously that it was gathering personal information from con SportsHub agreed to change its business practises.