5:20-1 Findings, declarations relative to fantasy sports.

1. The Legislature finds and declares as the public policy of this State that:

(1) Under the New Jersey Constitution, gambling activities may not be authorized without voter approval;

(2) New Jersey courts define gambling as contests in which the elements of chance are considered to play a predominant role or affect a material impact upon the results of the contest;

(3) Participation in fantasy sports activities cannot be considered gambling under New Jersey laws because fantasy sports activities are contests in which the relative skill of the participants predominates to a degree that chance plays no material role in determining the outcome of the activities;

(4) Further, there is a longstanding and still growing national consensus that fantasy sports activities do not constitute gambling, as shown by the enactment of federal statutes; state laws in New York, Massachusetts, Kansas, Tennessee, and several other states; and current New Jersey regulations adopted by the Division of Gaming Enforcement finding that fantasy sports activities do not constitute gambling; and

(5) Therefore, it is within the New Jersey Legislature's constitutional authority to authorize and regulate fantasy sports contests.

The Legislature further finds and declares that:

(6) Fantasy sports are popular and quickly expanding commercial activities for tens of thousands of New Jersey residents;

(7) Investigation of the industry in other states has revealed instances of unethical behavior by some employees of fantasy sports operators, which is enabled by lack of adequate regulation and oversight;

(8) It is in the State's interest to protect participants and promote a positive business environment in the conduct of fantasy sports activities;

(9) Therefore, it is proper and fitting for the Legislature to regulate the fantasy sports industry and protect consumers of fantasy sports activities in New Jersey; and

(10) Fantasy sports activities conducted in accordance with the provisions of P.L.2017, c.231 (C.5:20-1 et seq.) by an operator holding a permit to do so do not constitute:

(a) an authorized game or authorized gambling game as defined in section 5 of P.L.1977, c.110 (C.5:12-5);

(b) a contest of chance as defined in N.J.S.2C:37-1;

(c) gambling as defined in N.J.S.2C:37-1;

(d) a gambling transaction pursuant to N.J.S.2A:40-1; or

(e) lottery as defined in N.J.S.2C:37-1.

L.2017, c.231, s.1.