[co-author: Stephanie Kozol]*
Recently, Attorney General (AG) Matthew J. Platkin announced, in a joint press release with the New Jersey State Athletic Control Board (SACB), the adoption of a new sports betting policy related to combative sports. The policy aims to eliminate certain betting practices perceived as unethical and reinforce public trust in combative sports such as boxing, wrestling, and other related events. More than half of the states in the U.S. offer some form of legal sports betting. The proliferation of sports betting laws followed a 2018 Supreme Court decision striking down the Professional and Amateur Sports Protection Act (PASPA), which imposed a federal ban on sports betting. The Supreme Court’s landmark ruling allowed states legalize sports betting within their borders if they so desired. New Jersey was one of the first states to adopt its own comprehensive sports wagering law after the 2018 decision.The new policy follows recent concerns over the integrity of high-profile combative sports events. Most recently, the global phenomenon of Jake Paul’s defeat of Mike Tyson in an adjusted-rules boxing match raised questions about the fight’s integrity. Amid these concerns, Paul’s Most Valuable Promotions issued a statement refuting claims of match rigging, and asserting that the bout was a professional match sanctioned by the Texas Department of Licensing and Regulations (TDLR).
Key Provisions of the Policy
The updated policy outlines several critical provisions designed to prevent unethical behavior and give the public confidence in the integrity of combative sports:
- Betting Restrictions:
- Officials, members, and employees of the SACB are prohibited from betting on any combative sports event, both within New Jersey and globally.
- Legal betting on noncombative sports is permitted, provided such betting complies with local laws. However, board employees must register with the Division of Gaming Enforcement (DGE) before placing any such bets in New Jersey.
- Prohibited Conduct:
- All forms of illegal betting, including through unauthorized platforms, are strictly prohibited.
- Match fixing and the dissemination of insider information are expressly forbidden.
- Board personnel are barred from working for sportsbooks or their affiliates.
- Promoter and Participant Responsibilities:
- Promoters, participants, and their agents must refrain from betting on combative sports events held in New Jersey.
- Promoters, participants, and their agents are encouraged to adopt integrity policies that align with the SACB’s standards to prevent actions that could compromise the integrity of combative sports.
- Reporting and Training:
- All stakeholders, including board officials, members, employees, promoters, participants, agents, managers, and seconds, are required to report any policy violations to the SACB commissioner immediately.
- Board personnel must undergo training and acknowledge the policy.
- Enforcement and Penalties:
- Violations of the policy may result in disciplinary actions, including fines, license suspensions, or revocation.
Why It Matters
For businesses involved in New Jersey’s sports betting, these regulatory changes may be significant. The updated policy ensures that all stakeholders, including promoters, participants, and their agents, adhere to strict ethical standards. Companies must now navigate these new regulations to ensure compliance and avoid potential penalties, which may include fines, license suspensions, or revocations. Understanding and adhering to these new rules will be essential for continued operations in New Jersey’s combative sports market.
*Senior Government Relations Manager
