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Gov. Chris Christie today signed legislation to regulate and tax daily fantasy sports enterprises.

While New Jersey residents already  participate in large-scale commercial fantasy sports activities, it was not expressly authorized and therefore not regulated.  Fantasy sports companies have 60 days to apply for a permit, but may continue doing business in New Jersey while the application is processed.

Among other provisions, the new law:

  • allows the Division of Consumer Affairs (DCA) in the Department of Law and Public Safety to issue permits to fantasy sports operator applicants;
  • imposes a quarterly operations fee of 10.5 percent of gross revenue on fantasy sports providers;
  • prohibits participation by individuals under the age of 18 and those with financial interests in the fantasy sports industry;
  • allows fantasy sports companies to partner with casinos race tracks; and
  • imposes fines on actions that would tamper with the fantasy sports operations or affect the outcome of the activities.

The Office of Legislative Services estimates that the bill will produce $6 million a year  in additional state revenue.

In fantasy sports, people deposit money in accounts with a provider and create fantasy rosters of sports teams by selecting real players. They then compete against other contestants based on the statistical performances of those players.