New Jersey to vote on bill to regulate daily fantasy sports
TRENTON, N.J. (AP) New Jersey's Democrat-led Assembly on Monday approved legislation to regulate and tax daily fantasy sports.
The Assembly voted 56-15 on a bill that would impose a quarterly fee of 10.5 percent of gross revenues on daily fantasy sports providers. There were three abstentions.
The measure calls for the Division of Consumer Affairs to issue permits to fantasy sports operators, including casino licensees and racetracks.
The sponsors of the legislation say it doesn't limit small-scale season-long fantasy sports activities conducted among family and friends.
The New Jersey measure comes after the Fantasy Sports Trade Association said last month it estimates two-thirds of companies have closed or been acquired by competitors since last year.
The closures come as the legal landscape remains unsettled and as the industry has launched a costly state-by-state lobbying campaign as roughly half of all states are weighing legislation.
New Jersey lawmakers say the legislation includes consumer protections, including prohibiting those under 18 and people with financial interests in the fantasy industry.
''This ensures that people can enjoy fantasy sports without being taken advantage of,'' said Democratic Assemblyman John Burzichelli, a co-sponsor.
A bill moving through the state Senate imposes a 9.25 percent tax rate on daily fantasy sports companies' gross revenue.