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 website from the nation.
SportsHub has a license to run fantasy sports matches in NJ. But it still accepted customers from NJ for most of 2018 though it didn’t and was required to at the time.
In reality, SportsHub failed to apply for a permit until over a year following NJ handed the 2017 Fantasy Sports Act and close to seven weeks following the Feb. 6, 2018 deadline to apply for a license or cease working from the state.
SportsHub functions fantasy sports contests under the following brand names:
An NJ Division of Consumer Affairs investigation demonstrated more than just the fact SportsHub did business with no permit in NJ.
The investigation showed SportsHub failed to clearly disclose things to customers, for example:
The analysis disclosed SportsHub violated the Consumer Fraud Act in a variety of ways.
Primarily it stocks its clients’ private information for advertising purposes without consent. Second, by falsely advertising on its Leaguesafe online payment method website it is”the sole dream sports consumer protection agency on earth.”
The Consumer Affairs branch discovered Leaguesafe maintained two different Privacy Policy and Terms and Conditions. This made it confusing for consumers to figure out which one they’d consented to when accessing a SportsHub site.
SportsHub admitted 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 NJ legislation and regulations going 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 fantasy sports proprietor to be punished under NJ’s Fantasy Sports Act. The 2017 statute legalized and regulated internet fantasy sports in NJ.
Fantasy sports is different from traditional single-game sports gambling at New Jersey. Fantasy sports players build teams composed of athletes and enter the groups in everyday or season-long real-money competitions employing the athletes’ statistics to maintain score. It operates in a world separate from NJ casinos that are online .
Grewal stated the Fantasy Sports Act was developed to let users play and protect them against unscrupulous operators. He believes it is functioning:
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