New Jersey’s two-year-old dream sports legislation has claimed its first victim.
On Aug. 22, Attorney General Gurbir S. Grewal along with the Division of Consumer Affairs announced Minneapolis-based SportsHub had agreed to pay a $30,000 penalty for unlawfully operating a fantasy sports site in the nation.
SportsHub has a license to operate fantasy sports. However, it accepted customers from NJ for many of 2018 it did not and was needed to in the 25, though.
In fact, SportsHub didn’t put in an application for a permit until over a year following NJ handed the 2017 Fantasy Sports Act and near seven weeks following the Feb. 6, 2018 deadline to either apply for a license or cease operating in the state.
SportsHub operates fantasy sports contests under the following brand names:
An NJ Division of Consumer Affairs investigation actually revealed more than only the fact SportsHub did company without a license in NJ.
The analysis showed SportsHub failed to disclose things such as:
The analysis demonstrated SportsHub violated the Consumer Fraud Act in various ways.
Firstly, by neglecting to disclose it stocks its clients’ private information for marketing purposes. Secondly, by falsely advertising on its own Leaguesafe online payment method site that it is”the sole real fantasy sports consumer protection service on earth.”
The Consumer Affairs branch also found Leaguesafe maintained two separate Privacy Policy and Terms and Conditions. This makes it confusing for consumers to find out which one they had agreed to when obtaining a SportsHub site.
SportsHub confessed to all wrongdoing, agreed to change its business practices pay a $30,000 penalty, and to resolve the issues. The business also agreed to comply with regulations and all NJ legislation moving forward.
Acting Director of the Division of Consumer Affairs Paul R. Rodr??guez said NJ will continue to keep a close eye on all of fantasy sports operators and SportsHub:
SportsHub is the first dream sports proprietor to be punished under the Fantasy Sports Act of NJ. The 2017 statute basically legalized and controlled internet fantasy sports from NJ.
Fantasy sports is different from conventional sports. Fantasy sports players assemble teams made up of professional athletes and input the teams in daily or season-long real-money competitions utilizing the athletes’ data to keep score. It, therefore, operates in a sphere different from NJ online casinos, also.
Grewal stated the Fantasy Sports Act was created to allow users play and shield them. He believes it is functioning:
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