New Jersey’s state Assembly has taken the first step to regulate daily fantasy sports by approving a bill that would set a 10.5 percent quarterly tax on DFS site’s gross revenue.
The bill also requires DFS sites to receive permits from the state’s Division of Community Affairs. The provision also includes casinos and racetracks offering DFS games. The bill excludes small traditional fantasy formats played by family and friends, officials told the Associated Press.
A bill in the state’s Senate differs from the Assembly bill by setting a 9.25 percent tax on DFS sites.
The bills also require players to be 18 or older.
“The time is right for New Jersey to enter the fold with regulations aimed at providing strong consumer protections for our residents,” Assemblyman Vincent Mazzeo , a co-sponsor, said in a press statement. “This legislation not only protects consumers, but promotes a positive business environment for fantasy sports operators and their thousands of New Jersey customers.”
And the Alabama Senate recently declined to vote on H354, which would have legalized and regulated daily fantasy sports contests in the state. The bill previously had passed through committee with amendments but with the end of the session it’s essentially dead.
Last year then-Attorney General Luther Strange issued an opinion that DFS is illegal gambling under state law. He ordered DraftKings and FanDuel to cease and desist. They and other DFS operators then pulled out of the state.
A similar bill regulating DFS contests in Alabama could be introduced in the next session. For now, observers said Alabama residents should expect DFS sites to continue to not accepting entries from residents of the state.
The DFS industry achieved new legislation in 2016 in New York, Tennessee and Mississippi.
