New Jersey

New Jersey

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New Jersey is home to Atlantic City, the second most popular gambling destination in the whole of USA, where enthusiasts gather to enjoy world-famous casinos. Forward thinking, liberal values, and an open-minded government ushered in a new age for gaming in New Jersey, which began in 2013 when internet betting was made legal and fully regulated by the governing law. It was among the first states to amend gambling acts to allow cyber wagering within the borders, at a time when the rest of America is still affected by strict gambling bans. Although all forms of online gambling are permitted, there are exceptions to the rule, that strictly define who can conduct, and who can use the services on offer.

Official Institutions and Subdivisions

The New Jersey Division of Gaming Enforcement is the official institution overseeing all gambling-related matters in the states. Established in 1977, it is tasked with maintaining and promoting a strictly regulated, economically viable and safe gambling industry. Ensuring that operators and all participants are honest, legitimate and fit to conduct a wagering business, the Division strives to keep the industry free of organized crime, black market casino owners, or other negative influences that might compromise the integrity of the market, or the well-being of players. Main duties include licensing, applicants investigations, enforcing of regulations that pertain to internal controls, in-game rules and equipment, advertising, security and patron complaints; monitoring casino operations on a daily basis, and testing electronic gaming equipment, jackpot payouts and slot machines functioning.

The Casino Licensing Bureau and the Office of Financial Investigations are tasked with the issuing of permits, and various related processes such as applicants evaluation. Proper licensing is considered the basis of New Jersey's amended Control Act, which strictly prohibits unlicensed companies from being involved with the industry. Gaining a permission to legally offer services, develops in several stages. During the process, applicants must meet the statutory requirements, and prove to be of good character and reputable background, and financially capable to support future casino operations.

Licensing Procedure

To oblige with the constitutional amendment from 1978, Internet gaming, as defined under law, can only be authorized for land-based casinos operating in the Atlantic City. This means that servers, all software, hardware and equipment must be physically present in the facilities on the Boardwalk. Foreign companies may apply for permits, only if they previously partner with a casino company based in Atlantic City.

Licensed operators may conduct online casino games, such as slots and table games, poker, live poker, lottery and bingo. In addition to minimal application charges, licensees are expected to pay the following fees: an issuance fee of no less than $200,000, an internet gaming permit fee of not less than $400,000, and a responsible internet gaming fee annually, to the Department of Human Services in the amount of $ 250,000. All permit holders are subject to mandatory internal controls, which includes submitting gross revenue, banking and player fund reports. The Division will undertake regular inspection protocols, to ensure the proper functioning of surveillance systems, games, and banking transactions.

Responsible Gambling and Player Protection

The Division encourages and promotes the comfort and safety of patrons, through numerous defined requirements expected of all licensees. Only players over the age of 21, and residing on the territory of New Jersey, can register accounts and engage in real-money play. Every facility must have a mechanism installed, for the purposes of detecting players' physical locations at all times, both through internet and mobile means. Gambling problem call-center phone must be prominently displayed on the log-in and log-off screens. Persons and employees specifically authorized by a casino, will oversee operations for signs of any misconduct or suspicious behavior. Terms and conditions for internet gaming must be made available to patrons, addressing all aspects of operations: rules and obligations of both casinos and users, including all possible restrictions; full explanations of fees and charges, notifications about dormant accounts, estimated time periods for withdrawals, and relevant banking information.

DGE keeps up with latest industry trends, changes and new developments - facts which the authority considers important, as well as inside information and updates are published on the homepage of the official website. There, players can also check the list of all casinos licensed through DGE at all times, and search for highlights from annual reports. The section for Internet Gaming Disputes & Inquiries, General Inquiries & Patron Complaints for Atlantic City Casino Facilities, handles customer complaints after all other reasonable means have been exhausted by a permit holder.

2018 Sportsbetting Legislation

In June of 2018, following a victory in the U.S. Supreme court, New Jersey legalized sports betting. All professional sports may be wagered upon. Collegiate sports, with the exception of games involving teams from New Jersey, may be wagered upon. It is still illegal to bet on high school sports or e-sports or any video game competition.

People who directly participate in sports, such as referees and players are prohibited from betting on their own sport but may bet on others. The Golden Nugget will be prohibited from booking any NBA action because it is owned by Houston Rockets owner, Tilman Fertitta.In person, wagering is currently allowed at both casinos and racetracks. After 30 days they may apply to participate in online and electronic wagering. 

New Jersey wisely declined to charge and “integrity fee” that would wind up in the coffers of professional sports leagues. However, casinos will pay 8.5% of live betting revenue and 13.5% of electronic revenue to the state. Tracks will pay another 1.25% on electronic revenue.

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