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Jan 6, 2020 8:41:06 AM

Legal Online Gambling in New Jersey

February 26, 2013, saw the passage of bill A2578 which legalized online gambling in the state of New Jersey. This new legislation came about through efforts by Sen. Ray Lesniak. Lesniak had visions of strengthening the economy of Atlantic City through the use of this online gambling bill, and he couldn’t have been more right.

The bill finally passed the Assembly by an impressive margin of 68-5 and passed the Senate with a vote of 35-1. Chris Christie signed the bill into action, stating that it would be a responsible yet exciting option that will make Atlantic City more competitive while also bringing financial benefits to the state.

Online Gambling Licensing

This bill allows land-based gambling facilities to apply for an online gambling permit and to partner with providers and operators. The types of licenses available in New Jersey are as follows:

Casino Service Industry Enterprise License - This license is for software providers for land-based companies, as well as companies who provide lists of gambling players.
Vendor Registrants License - This license pertains to online gambling service providers
Ancillary Casino Service Industry Enterprise License - This license deals with companies providing services such as payment processing, geolocation, age verification, and customer identity. It also includes junket operators and affiliates.

Online Gambling Legal Fees

There are application fees involved in the process of applying for an online gambling license including a nonrefundable deposit of $100,000. This is just for the application, If the application is then approved, that $100,000 will be applied toward the cost of the license. The online gambling license costs a total of $400,000.

Then there are renewal fees and annual fees, each costing $250,000. These funds are applied to the state of New Jersey’s treatment programs for problem gamblers.

15% of the gross gaming revenue made by iGaming operators will be paid in taxes while 2.5% of the gross gaming revenue is owed to the Casino Reinvestment Development Authority. (CRDA)

State Regulation of Online Gambling

In the US, online gambling is regulated by the state. The state has the power to legalize online gambling within their borders, and if they choose to do so, they are responsible for coming up with regulatory procedures in order to ensure safe and legal gambling practices.

In New Jersey, it is the Division of Gaming Enforcement (DGE) who is responsible for such regulations. The DGE monitors the licensing process and is responsible for vetting applicants. This organization also monitors the online casino games to ensure fairness and safety for the players. They oversee the owners of casinos, operators, vendors, and all employees, to ensure the overall integrity and to make sure there is no corruption. Finally, the DGE monitors all information systems as well to uphold integrity and safety. When there are legal violations, it is up to the DGE to enforce penalties.

Legal Gambling Age

All gamblers in NJ online casinos must be at least 21 years of age in order to participate in online gambling. In order to participate in an online casino, the player must be physically located within the state borders while playing. Players are not required to be a resident of the state, however, they must physically be inside New Jersey to play on an NJ online casino.

Online casino operators in New Jersey use age verification technology and geolocation technology software to ensure that they are operating in a safe and legal manner. Geolocation technology detects the physical location of the players at the time of gameplay. This technology can pinpoint the exact location of the user, in order to ensure compliance of the law.

Legal Online Casino Games in New Jersey

There are many different online casino games legally allowed in NJ online casinos. Online casinos in the Garden State are allowed to offer numerous different games. All NJ online casinos offer loads of slots, as slots are by far the most popular casino game in the country. Table games are very popular as well to online casino player and nowadays there are so many to choose from. Popular online casino table games in New Jersey include:

Blackjack
Baccarat
Texas Hold’em
Pai Gow
Three Card Poker
Let It Ride
Solitaire

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