NJ Officials Move Forward With Rules On Internet Gambling

ATLANTIC CITY –The state Division of Gaming Enforcement posted a draft of proposed regulations on internet wagering today and announced they will be published in the New Jersey Register on June 3. There will be a 60-day public comment period through Aug.2, 2013 with final adoption following review and response to all comments.

Pursuant to state law, Division Director David Rebuck will announce the date on which New Jersey casinos will be permitted to begin accepting wagers over the Internet at least 45 days prior to commencement.

“New Jersey has once again proven to be in the forefront of casino gaming with the development of Internet wagering regulations for all casino games,” said Rebuck. “I commend Division staff for their commitment and diligence to developing regulations that ensure both effective oversight and the integrity of operations.

Mobile gaming regulations were the precursor to the Internet gaming regulations. Through extensive research of those regulations, the Division examined domestic and foreign jurisdictions, including Nevada, Alderney, France, Spain, Italy and Denmark; reviewed standards of others gaming operations; and considered guidelines employed by Federal Reserve regarding network security. The Division also reviewed and incorporated standards recommended by the National Council on Problem Gambling.

Enhanced revenue from permit and license fees will go to the Council on Compulsive Gambling of New Jersey and other compulsive gambling treatment programs in the State.

Technical standards for establishing player integrity and safeguarding against underage and problem gamblers, including ensuring that people on the Division’s Self-Exclusion and Exclusion Lists are not able to wager, are proposed in the regulations. System software standards for age verification, prevention of fraudulent and criminal conduct and funding limits for patron accounts are also proposed.

Key operational controls and security measures are required in the regulations to ensure that patron access to the Internet is occurring within the boundaries of the State of New Jersey. Individuals do not have to be residents of the State, but must be located within the State to participate in Internet gaming through a permitted Atlantic City casino.

The proposed regulations provide for substantial civil penalties for companies that are not an Internet gaming permit holder and who advertise and utilize their premises for placing Internet gaming wagers. There is also full disclosure that it is a criminal offense to allow a person who is under the age of 21 to gamble on an established Internet gaming account.

A gaming-related casino service industry enterprise license application would need to be filed for any entity that intends to provide software to casinos or to offer Internet gaming on behalf of a licensed casino. Applications are being accepted so as to ensure that only reputable companies- those that meet the highest standards of integrity- will participate as partners with New Jersey’s licensed casinos.

The division has recently requested bids for an Internet gaming consultant to assist the division in implementing Internet gaming in New Jersey. “We are looking forward to having additional technical resources and expertise as we enter into a new era of gaming regulations and anticipate completion of this process in the near future,” said Rebuck.

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