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 Division of Consumer Affairs announced Minneapolis-based SportsHub had consented to pay a $30,000 penalty for unlawfully running a fantasy sports site in the nation.
SportsHub has a permit to run fantasy sports games in NJ. However, it still accepted customers from NJ it did not and was required to in the moment although.
In reality, SportsHub did not put in an application for a permit until over a year after NJ passed the 2017 Fantasy Sports Act and close to seven months following the Feb. 6, 2018 deadline to apply for a permit or cease working from the state.
SportsHub operates fantasy sports contests under the brand names:
More than just the fact SportsHub failed company in NJ with no license was really demonstrated by an NJ Division of Consumer Affairs investigation.
The investigation showed SportsHub failed to disclose a few things including:
The investigation also disclosed SportsHub violated the Consumer Fraud Act in various ways.
Primarily it stocks its clients’ private information for marketing purposes. Second, by falsely advertising on its own Leaguesafe online payment system site it is”the sole real fantasy sports consumer protection service on earth.”
The Consumer Affairs division also discovered Leaguesafe was keeping two different Privacy Policy and Terms and Conditions. This made it confusing for customers to figure out which one they’d consented to when obtaining a SportsHub website.
SportsHub admitted to each of wrongdoing, agreed to change its business practices pay a $30,000 penalty, and to solve the problems. The business agreed to comply with all NJ legislation and regulations moving forward.
Acting Director of the Division of Consumer Affairs Paul R. Rodr??guez said NJ will continue to keep a close eye on SportsHub and all of fantasy sports operators:
SportsHub is your first dream sports operator to be punished under the Fantasy Sports Act of NJ. The 2017 statute essentially legalized and regulated fantasy sports from NJ.
Fantasy sports is different from traditional sports betting in New Jersey. Fantasy sports players assemble teams made up of athletes and enter the teams in daily or season-long real-money competitions employing the athletes’ personal statistics to maintain score. It, therefore, operates in another world separate from NJ online casinos, also.
Grewal explained the Fantasy Sports Act was created to let consumers protect and play them. He thinks it’s functioning:
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