New Jersey dream sports law has claimed its first victim.
On Aug. 22, Attorney General Gurbir S. Grewal and the Department of Consumer Affairs declared Minneapolis-based SportsHub had consented to pay a $30,000 penalty for unlawfully running a fantasy sports website in the state.
SportsHub includes a license to operate fantasy sports. It accepted clients from NJ it did not and was needed to at the 25, though.
In fact, SportsHub did not put in an application for a permit until over a year later NJ passed the 2017 Fantasy Sports Act and close to seven weeks after the Feb. 6, 2018 deadline to either apply for a license or cease operating in the state.
SportsHub functions fantasy sports contests under the following brand names:
More than only the fact SportsHub failed company in NJ with no license was revealed by an NJ Division of Consumer Affairs investigation.
The investigation revealed SportsHub failed to disclose many things to consumers, including:
The analysis disclosed SportsHub violated the Consumer Fraud Act in a variety of ways.
By neglecting to disclose it stocks its customers’ private information for marketing purposes without consent. Secondly, by falsely advertising on its own Leaguesafe online payment system website that it is”the sole fantasy sports consumer protection agency in the world.”
The Consumer Affairs division also discovered Leaguesafe maintained two Privacy Policy and Terms and Conditions. This made it confusing for customers to find out which one they had agreed to when accessing a SportsHub site.
SportsHub confessed to all wrongdoing, agreed to alter its business practices also pay a $30,000 penalty, and to resolve the problems. The company 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 most of fantasy sports operators:
SportsHub is the fantasy sports operator to be penalized under the Fantasy Sports Act of NJ. The 2017 statute basically legalized and controlled internet fantasy sports.
Fantasy sports differs from conventional sports. Fantasy sports players build teams composed of pro athletes and enter the teams everyday or season-long real-money competitions employing the athletes’ personal data to keep score. It operates in a sphere different from NJ internet casinos, also.
Grewal explained the Fantasy Sports Act was designed to let users shield and play them. He thinks it is working:

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