New Jersey § 5:20-1

§ 5:20-1.

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 .