New Jersey formally approves daily fantasy sports

New Jersey has become the 16th US state to formally approve daily fantasy sports (DFS) betting within its borders.

On Thursday, Gov. Chris Christie stopped drooling over someone else’s nachos long enough to put his John Hancock on the DFS legislation that has been sitting on his desk since the state senate approved S-1982/A-3532 in the first week of July. While the timing dovetails nicely with the imminent arrival of a new NFL season, the law won’t take effect for another 90 days.

DFS operators like DraftKings and FanDuel are already operating in the state, having received assurances from the Division of Gaming Enforcement that the activity fell under the umbrella of existing state laws. However, operators must now apply for permits from the state’s Division of Consumer Affairs, the fees for which have yet to be determined.

The new law will also require DFS operators to pay taxes on their gross gaming revenue for the first time. Operators will pay 10.5% tax on revenue derived from New Jersey DFS players and the state believes it could reap an annual $6.6m in revenue from the activity.