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.
Troutman Pepper State Attorneys General Team
Ashley Taylor – Co-leader and Firm Vice Chair Ashley is co-leader of the firm’s nationally ranked State Attorneys General practice, vice chair of the firm, and a partner in its Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. He helps his clients navigate the complexities involved with multistate attorneys general investigations and enforcement actions, federal agency actions, and accompanying litigation. |
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Clay Friedman – Co-leader Clayton is a partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and co-leader of the State Attorneys General practice, multidisciplinary teams with decades of experience crafting effective strategies to help deter or mitigate the risk of enforcement actions and litigation. |
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Judy Jagdmann Judy is a partner in the firm’s Regulatory Investigations, Strategy and Enforcement (RISE) practice, based in the Richmond office. She brings experience serving as chair and commissioner of the Virginia State Corporate Commission (VSCC) from 2006 through 2022, which includes regulating the utilities, insurance, banking, and securities industries. She also served as Virginia’s attorney general from 2005-2006. |
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Stephen Piepgrass Stephen leads the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. He focuses his practice on enforcement actions, investigations, and litigation. Stephen primarily represents clients engaging with, or being investigated by, state attorneys general and other state or local governmental enforcement bodies, including the CFPB and FTC, as well as clients involved with litigation, with a particular focus on heavily regulated industries. |
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Michael Yaghi Michael is a partner in the firm’s State Attorneys General and Regulatory Investigations, Strategy + Enforcement (RISE) Practice Groups, nationwide teams that advise clients on consumer protection enforcement matters and other regulatory issues. |
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Samuel E. “Gene” Fishel Gene is a member of the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) practice, based in the Richmond office. He brings extensive regulatory experience, having most recently served as senior assistant attorney general and chief of the Computer Crime Section in the Office of the Attorney General of Virginia, and as special assistant U.S. attorney in the Eastern District of Virginia for 20 years. |
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Chuck Slemp Chuck advises clients on a wide range of complex issues that frequently involve government actions, including investigations, inquiries, regulatory matters, and litigation. With a distinguished background in the law and public service, he served as chief deputy attorney general of Virginia before joining the firm. In addition to overseeing the Department of Law and Division of Debt Collection, Chuck managed a team of attorneys who handle complex litigation and investigations. He also directed the attorney general’s legislative affairs and represented the attorney general in various capacities. |
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Tim Bado Tim is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, where he represents corporations and individuals facing potential civil and criminal exposure. Tim’s experience in government investigations, enforcement actions, and white-collar litigation spans a number of industries, including financial services, pharmaceutical, health care, and government contracting, among others. |
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Jessica Birdsong Jessica is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group. She received her J.D. from the University of Richmond School of Law, magna cum laude, where she served as associate articles editor of the Journal of Law & Technology. |
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Chris Carlson Chris Carlson represents clients in regulatory, civil and criminal investigations and litigation. In his practice, Chris regularly employs his prior regulatory experience to benefit clients who are interacting with and being investigated by state attorneys general. |
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Blake R. Christopher Blake collaborates with clients on matters related to government contracting, investigations, and disputes. His senior-level government experience generates valuable insights and strategies for clients across a variety of industries. |
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Natalia Jacobo Natalia is an associate in the firm’s Regulatory Investigations, Strategy and Enforcement (RISE) practice. She focuses her practice on two primary areas: government contracting and state attorney general work. |
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Namrata Kang Namrata (Nam) is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, based in the Washington, D.C. office. She routinely advises clients on a wide variety of state and federal regulatory matters, with a particular emphasis on state consumer protection laws relating to consumer financial services and marketing and advertising. |
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Michael Lafleur Michael is an associate in the firm’s Regulatory Investigations, Strategy, and Enforcement Practice Group. Based out of the firm’s Boston office, Mike has deep experience in litigation, investigations, and other regulatory matters involving state-level regulators and state attorneys general. |
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Susan Nikdel Susan is an associate in the firm’s Consumer Financial Services Practice Group, and focuses her practice on consumer financial services matters. She has defended several of the nation’s largest and most influential financial institutions in individual and class action litigation involving the Telephone Consumer Protection Act (TCPA), Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), and other consumer privacy statutes. |
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Lane Page Lane specializes in federal and state regulatory investigations and complex civil litigation. He focuses on representing financial institutions and other businesses, with a particular emphasis on consumer protection and fair lending issues. |
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Trey Smith Trey is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice. He focuses his practice on helping financial institutions and consumer facing companies navigate regulatory investigations and resulting litigation. |
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Daniel Waltz Daniel is a member of the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and State Attorneys General team. He counsels clients in connection with navigating complex government investigations, regulatory compliance, and transactions, involving state and federal government contracting obligations. Drawing on his broad experience as a former assistant attorney general for the state of Illinois, Daniel is a problem solver both inside and outside the courtroom. |
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Cole White Cole is a member of the firm’s Regulatory Investigations, Strategy and Enforcement (RISE) group. He has a decade of experience working in the attorney general community, having joined the firm from the Wyoming Office of the Attorney General, where he was assistant attorney general. |
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Stephanie Kozol Stephanie is Troutman Pepper’s senior government relations manager in the state attorneys general department. |