Jersey has taken a step closer to legalising daily fantasy sports (DFS) after a state Assembly committee cleared a bill that would regulate the industry.

On Monday, the DFS bill sailed through a committee of the Assembly Tourism, Gaming and the Arts Committee by a majority of 7-0. The bill established guidelines and a tax rate for companies that operate such games in the Garden State.

The proposed legislation sets out rules to charge DFS companies a fee of 10.5% on gross revenue in order to legally operate in the US state.

The previous legislation that began making movements last year was slightly different, imposing only a 9.25% tax rate on companies’ gross revenue.

New Jersey’s constitution does not allow the state Legislature to regulate “games of chance”. However, former Casino Control Commission Chairman, Steven Perskie, argued that DFS contests are games of skill and thus should not be classed as gambling under the definition of the New Jersey Constitution.

It would therefore place DFS within the authority of the New Jersey Legislature to authorise and regulate. Perskie stated: “While there are inherent elements of chance, success in fantasy sports tournaments is demonstrably dependent upon the exercise of analytics, research, and carefully calibrated strategy. It is clear that the relative skill or participants, not chance, determines the outcome of fantasy sports contests.”