New Jersey dream sports legislation has claimed its first victim.
On Aug. 22, Attorney General Gurbir S. Grewal and the Division of Consumer Affairs declared Minneapolis-based SportsHub had consented to pay a $30,000 penalty for unlawfully operating a fantasy sports site in the state.
SportsHub now has a permit to run fantasy sports. However, it was accepting customers from NJ for many of 2018 though it didn’t and was needed to.
In reality, SportsHub did not apply for a license until over a year later NJ passed the 2017 Fantasy Sports Act and close to seven weeks following the Feb. 6, 2018 deadline to apply for a license or cease operating in the state.
SportsHub functions fantasy sports competitions under the following brand names:
An NJ Division of Consumer Affairs investigation revealed more than only the fact SportsHub did company in NJ with no permit.
The analysis also revealed SportsHub failed to disclose many things including:
The investigation revealed SportsHub violated the Consumer Fraud Act in a variety of ways.
Firstly it stocks its customers’ private information for marketing purposes without permission. Second, by falsely advertising on its Leaguesafe online payment system site that it is”the sole dream sports consumer protection agency in the world.”
The Consumer Affairs division discovered Leaguesafe maintained two different Privacy Policy and Terms and Conditions. This made it confusing for customers to find out which one they’d consented to when accessing a SportsHub website.
SportsHub admitted to each of wrongdoing, agreed to alter its business practices to solve the issues, and also pay a $30,000 penalty. The company also agreed to comply with all NJ laws and regulations going forward.
Acting Director of the Division of Consumer Affairs Paul R. Rodr??guez stated NJ will continue to keep a close eye on SportsHub and most of fantasy sports operators:
SportsHub is the dream sports operator to be punished under NJ’s Fantasy Sports Act. The 2017 statute regulated fantasy sports and legalized.
Fantasy sports is different from conventional sports. Fantasy sports players assemble teams made up of athletes and enter the teams in everyday or season-long real-money contests using the athletes’ statistics to keep score. It, consequently, operates in another sphere separate from NJ online casinos.
Grewal said the Fantasy Sports Act was developed to let consumers play and protect them from unscrupulous operators. He thinks it’s functioning:
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