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 Division of Consumer Affairs announced Minneapolis-based SportsHub had consented to pay a $30,000 penalty for unlawfully running a fantasy sports site from the nation.
SportsHub includes a permit to operate fantasy sports games in NJ. But , it was accepting clients for most of 2018 from NJ though it did not and was needed to at the time.
In reality, SportsHub didn’t apply for a license until over a year after NJ passed the 2017 Fantasy Sports Act and close to seven months after the Feb. 6, 2018 deadline to either apply for a license or cease functioning in the state.
SportsHub operates various fantasy sports competitions under the brand names:
More than just the fact SportsHub did business in NJ was demonstrated by an NJ Division of Consumer Affairs investigation.
The investigation also revealed SportsHub failed to disclose many things to consumers, for example:
The investigation disclosed SportsHub violated the Consumer Fraud Act in a variety of ways.
Primarily it stocks its customers‘ personal information for marketing purposes. Secondly, by falsely advertising on its own Leaguesafe online payment method website that it is“the only fantasy sports consumer protection agency on earth.“
The Consumer Affairs branch also discovered Leaguesafe was keeping two different Privacy Policy and Terms and Conditions. This made it confusing for customers to find out which one they’d agreed to when obtaining a SportsHub website.
SportsHub confessed to each of wrongdoing, agreed to change its business practices to solve the issues, and also pay a $30,000 penalty. The business agreed to comply with regulations and all NJ legislation moving 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 your fantasy sports operator to be penalized under the Fantasy Sports Act of NJ. The 2017 statute legalized and controlled fantasy sports.
Fantasy sports is different from conventional sports betting at New Jersey. Fantasy sports players assemble teams made up of athletes and enter the teams everyday or season-long real-money contests employing the athletes‘ data to maintain score. It operates in a sphere separate from NJ casinos that are online .
Grewal explained the Fantasy Sports Act was developed to allow consumers play and protect them. He believes it is working:

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