New Jersey Attorney General Gurbir S Grewal and the Division of Consumer Affairs have announced the adoption of new rules for fantasy sports activities in the Garden State, including measures designed to protect minors.
The new framework implements a 2017 law requiring fantasy sports operators to obtain permits from the Division and comply with other requirements to protect participants in New Jersey’s new online sports betting frontier.
Operators are required to adopt procedures to ensure that no one under the age of 18 years participates in fantasy sports activities. They are also are prohibited from advertising in publications or media aimed exclusively at minors, at K-12 schools and at sports venues used exclusively for K-12 student sports activities. In addition, if an account is found to have been created by a minor, any money held in the account must be refunded.
The Division has also taken regulatory steps to protect other fantasy sports participants, including limiting the risk of debt as a result of their activities. To that end, operators may not extend credit to any participant. They must also offer individuals the ability to restrict themselves from participating in fantasy sports activities if they so choose.
Other consumer protections in the new rules include a requirement that fantasy sports operators maintain adequate procedures for processing complaints from participants, and restrictions on participation by employees, officers, directors, and owners of fantasy sports operators.
Operators also are required to maintain appropriate reserves so that they will be able to satisfy their financial obligations to participants.The new rules will supplement statutory requirements that the Division has already begun enforcing.
The Division announced its first action to enforce the fantasy sports law in August 2019, when it entered into a consent order with SportsHub Games Network Inc.
The company agreed to pay a $30,000 civil penalty after the Division found that it unlawfully operated a fantasy sports site without a permit, and failed to clearly and conspicuously disclose that it collects personal information from consumers’ social media accounts and shares it with third parties. SportsHub also agreed to modify its business practices.