Senate panel approves bill to regulate daily fantasy sports

The Senate State Government, Wagering, Tourism and Historic Preservation Committee voted 5-0 Monday in favor of a bill that aims to regulate daily fantasy sports in New Jersey.Under the bill, which is sponsored by state Sen. Jim Whelan (D-Northfield), popular sites like FanDuel and DraftKings would be regulated by the state Department of Law and Public Safety.

“As daily fantasy sports continues to gain popularity, many states are struggling with how to efficiently regulate it,” Whelan said. “Our bill shows you can have a regulatory model in place that protects consumers while at the same time not overburdening fantasy sports companies.”

The measure contains provisions that would forbid employees of daily fantasy sports companies from playing or sharing statistical information that may offer a competitive advantage. Another provision would also allow for prospective players to restrict themselves from participating.

The call for regulation comes after New York launched an investigation last year into whether or not FanDuel and DraftKings employees were utilizing insider information to gain an advantage.

Alongside the rise in popularity of daily fantasy sports sites, a number of states have passed regulatory bills for the industry and many more are currently contemplating it.

“The reality is that daily fantasy sports isn’t going anywhere,” Whelan said. “We can either do nothing, or we can help attract these fantasy sports companies to New Jersey and protect consumers in the process.”

The measure now heads to the Senate Budget and Appropriations Committee.