The New Jersey Senate voted to legalize Daily Fantasy Sports on Friday the 30th of June 2017. The vote passed 29-6 and is now set to become law in New Jersey. The bill will still need to be signed into law by state Governor, Chris Christie, who now has the final say.
Will the Governor Support Daily Fantasy Sports?
Many people in New Jersey are now unsure of whether he will pass the bill. Christie has never really addressed the subject of daily fantasy sports, with the exception of one time in 2015 where he was dismissive on the subject.
He was quoted as saying, “Are we really talking about getting the government involved in fantasy football? Wait a second. We have $19 trillion in debt, we have people out of work, we have ISIS and al Qaeda attacking us, and we’re talking about fantasy football? Can we stop?”
Daily Fantasy Sports Consumer Protection
However, many have stated that this is a very realistic bill that seeks to do nothing more than protect consumer’s rights. New Jersey does not expect legalizing daily fantasy sports to suddenly inject vast amounts of money into its budget. It simply aims to ensure players can continue to enjoy it. Should the bill pass, all daily fantasy sports operators will be required to pay a 10.5% tax, which should generate between $6-7 million per year for the state.
The bill will classify daily fantasy sports as a non-gambling game of skill and shouldn’t affect the outcome of the upcoming Supreme Court hearing on New Jersey legalizing sports betting.
What are Daily Fantasy Sports?
Daily fantasy sports are similar to many other forms of fantasy sports. Players will build a fantasy team of players, while ensuring they adhere to the rules, such as the budget cap. They can then see how their team fairs in comparison to other player’s teams. Typically, players will pay a fee to enter into a competition, which goes towards the pot, with the top finishers receiving prize money out of the pot.
2024 Latest News: IRS Rules DFS as Gambling: What it Means for Players and Companies
The IRS has decided that playing daily fantasy sports (DFS) is like gambling. This means that people who play DFS can subtract the money they pay to enter games from the money they win when they file their taxes. Even though DFS requires skill, the IRS says the outcome mostly depends on luck, like other forms of gambling. This decision could affect how much money DFS companies have to pay in taxes and might make it harder for smaller DFS businesses to stay open.
