New Jersey’s two-year-old fantasy sports legislation has claimed its first victim.
On Aug. 22, Attorney General Gurbir S. Grewal along with the Department of Consumer Affairs announced Minneapolis-based SportsHub had agreed to pay a $30,000 penalty for unlawfully operating a fantasy sports site in the state.
SportsHub has a license to operate fantasy sports. But , it was accepting customers from NJ for most of 2018 although it did not and was needed to at the time.
In actuality, SportsHub didn’t put in an application for a permit until over a year following NJ handed the 2017 Fantasy Sports Act and close to seven months after the Feb. 6, 2018 deadline to apply for a permit or cease functioning in the state.
SportsHub operates fantasy sports contests under the following brand names:
An NJ Division of Consumer Affairs investigation shown more than just the fact SportsHub did company in NJ without a permit.
The analysis also revealed SportsHub failed to disclose things including:
The analysis also disclosed SportsHub violated the Consumer Fraud Act in various ways.
Firstly it stocks its clients’ private information for marketing purposes. Secondly, by falsely advertising on its own Leaguesafe online payment system site that it is”the sole dream sports consumer protection service in the world.”
The Consumer Affairs division discovered Leaguesafe was maintaining two Privacy Policy and Terms and Conditions. This made it confusing for customers to figure out which one they’d consented to when accessing a SportsHub site.
SportsHub confessed to all wrongdoing, agreed to change its business practices pay a $30,000 penalty, and to resolve the problems. The business also agreed to comply with all NJ legislation and regulations moving forward.
Acting Director of the Division of Consumer Affairs Paul R. Rodr??guez stated NJ will continue to keep a close eye on all fantasy sports operators and SportsHub:
SportsHub is your dream sports operator to be punished under NJ’s Fantasy Sports Act. The 2017 statute regulated fantasy sports and legalized.
Fantasy sports differs from traditional single-game sports betting in New Jersey. Fantasy sports players assemble teams made up of athletes and input the teams everyday or season-long real-money competitions utilizing the athletes’ personal statistics to maintain score. It operates in a different world separate from NJ casinos that are online , too.
Grewal stated the Fantasy Sports Act was designed to let users play and shield them from unscrupulous operators. He thinks it’s working:
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