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The land-based casino permit holder may also allow the platform provider to offer its own branded casino and may contract to allow other brands to offer their online casino subject to the five skin limit.
A land-based casino permit holder may have as many platform providers as it wishes, but only five customer-facing branded casino skins. An applicant for a land-based casino licence must be an entity created in the State of New Jersey.
However, its holding company and intermediary companies can be entities created in other jurisdictions. Application procedure Land-based casino applicants must obtain a casino licence in order to operate a casino in Atlantic City.
The process for issuance of a licence can take nine months or longer from the date the application is deemed a complete filing by the DGE. If an applicant wishes to open for business before the issuance of a casino licence, the regulatory scheme authorises what is essentially a temporary licence and is known as "Interim Casino Authorization" ICA NJSA 5: This process is only available after a complete application has been filed and the DGE has completed a preliminary background investigation of the applicant and its qualifiers and the preliminary investigation has not revealed any negative information.
The applicant must deliver ownership of the applicant entity to a trust pending licensure, the investigation for which must be completed within nine months of the creation of the ICA trust subject to one three-month extension NJSA 5: Generally, online platform provider CSIE licence applicants will be subject to a similar time frame.
As with the Interim Casino Authorization, a transactional waiver is not available to a CSIE unless a complete application has been filed and no negative information has been discovered during the preliminary background investigation.
However, both licences are subject to a re-submission requirement every five years NJAC An online gambling permit is valid for one year. What are the limitations or requirements imposed on land-based gambling operators?
No person under the age at which a person is authorised to purchase and consume alcoholic beverages currently 21 years old in New Jersey may enter, or wager in, a licensed casino or simulcasting facility.
There are exceptions for passage through, and for those licensed to work in, the casino facility NJSA 5: Certain political contributions are prohibited.
In relation to gambling, the following must not directly or indirectly contribute money or anything of value to any candidate, political party or committee related to a political party NJSA 5: Holder of a casino licence including any holding, intermediary or subsidiary company of it.
Restrictions New Jersey has a comprehensive self-exclusion programme, that is, the voluntary process where a person with a gambling concern can have themselves excluded from specific gambling venues or from accessing gambling products provided by certain providers NJSA 5: Patrons can add their name to the self-exclusion list under a process set forth in the regulations NJAC The minimum period for self-exclusion is one year.
Any monies won by a person on the exclusion or self-exclusion list must be retained by the casino licensee and forfeited to the State.
Anti-money laundering legislation Anti-money laundering is addressed at the federal level. For further information, see Gaming law in the United States Nevada: What is the licensing regime if any for online gambling?
Available licences Companies wishing to engage in online gambling in New Jersey may only do so in conjunction with a New Jersey licenced land-based casino operator who has obtained an online gambling permit.
Licensed online gambling operators are able to offer any game approved by the DGE, which includes all traditional table games, slot games, poker, among others, but excludes sports-betting.
The number of licences available is theoretically unlimited since any land-based licensed operator may get an online gambling permit and there is no limitation on land-based licences.
Every permit holder can have up to five skins. However, as a practical matter, the number of economically feasible land-based operators is finite.
Eligibility Any online gambling company is eligible to apply subject to the good character, honesty, integrity and financial stability requirements of the Casino Control Act and its attendant regulations.
The application process will generally take about a year to two years from the time a complete application has been accepted by the DGE. The online gambling applications historically have taken a bit longer than other CSIE applications given the fact that most online gambling applicants are based in foreign jurisdictions and part of the investigatory process requires personal interviews of qualifiers.
There is a process that allows for the issuance of a waiver of licensure to conduct business with a land-based casino licensee prior to the issuance of a CSIE licence known as a "transactional waiver" NJAC This waiver is available after a complete application has been filed and the DGE has completed its preliminary background checks.
Failing to adhere to the re-submission requirements will result in a revocation of the licence. What are the limitations or requirements imposed on online gambling operators?
Prohibitions Sports betting, other than casino simulcast wagering on horse racing pursuant to the Casino Simulcasting Act, is prohibited in New Jersey.
No person under the age at which a person is authorised to purchase and consume alcoholic beverages currently 21 years old in New Jersey must enter, or wager in, a licensed casino or simulcasting facility.
There are exceptions for passage through and for those licensed to work in the facility NJSA 5: This prohibition is applicable to online gambling.
Restrictions See Question 6, Restrictions. Is there a distinction between the law applicable between B2B operations and B2C operations in online gambling?
B2B and B2C operations are subject to the same licensing and regulatory requirements. What technical measures are in place if any to protect consumers from unlicensed operators, such as ISP blocking and payment blocking?
There are no technical measures in place to restrict unlicensed operators from offering games in New Jersey. However, there is an extensive geo-location system in place to ensure that licensed New Jersey operators do not inadvertently offer their product to anyone located outside of New Jersey.
Mobile gambling and interactive gambling What differences if any are there between the regulation of mobile gambling and interactive gambling on television?
Mobile gambling and online gambling are subject to the same regulatory structure, with one significant difference. Mobile gambling must only take place within an approved land-based casino hotel complex, while online gambling can take place anywhere in New Jersey.
The use of a television to access a remote gaming server to conduct mobile or online gambling is permitted. How is social gaming regulated in your jurisdiction?
Therefore, a social game that does not offer a prize or charge consideration to play with respect to a game of chance is not subject to regulation or licensure under any gaming regime in New Jersey.
Most social operators engaged in social gaming, which utilises games of chance, structure their product so that nothing is won based on the outcome of the game, other than credits that have no value other than for redemption for additional play.
What this definition specifically excludes is "any form of promise involving extension of a privilege of playing at a game without charge on a mechanical or electronic amusement device, other than a slot machine as an award for the attainment of a certain score on the device" NJSA 2C: This section of the statute was last amended in It is widely believed that this section can be interpreted to include credits earned for additional play on social games of chance.
Therefore, "winning" credits for additional play will not make the game a gambling game subject to regulation under the Casino Control Act. While properly structured social games are not subject to the Casino Control Act, there may be other state laws applicable to any non-gambling business that may be applicable to social gaming businesses such as, consumer fraud or tax laws.
Are gambling debts enforceable in your jurisdiction? Gambling debts are enforceable in New Jersey. Gambling debts are created by the issuance of a counter check by the casino licensee which is signed and returned to the casino licensee by the patron in exchange for cash or gaming chips.
This counter check is known as a "marker". The collection process has a very specific limitation. Until a collection matter is turned over to a licensed attorney, only a key licensed individual employed by a casino licensee can engage in collection activities on behalf of a casino licensee.
Once the matter is turned over to an attorney licensed in the jurisdiction in which the collection activity is to be commenced, that attorney may engage in all legally permissible actions for gambling debt collection permitted in that jurisdiction.
Those permissible actions may vary by state. In New Jersey, a suit for collection on a marker is the same as a suit for collection on a bad check and may be brought against the issuer of the marker.
Once a judgment is obtained, the assets of the patron may be encumbered until the debt is satisfied. What are the applicable tax regimes for land-based and online gambling?
Additionally, there is an investment alternative tax in the net amount of 2. This investment alternative tax may be decreased to 1.
No licensee has to date failed to take those actions. Gross revenue is the total of all sums received from gambling operations excluding simulcast revenues less the total of all sums paid out as winnings but excluding the value of any non-cash prizes NJSA 5: There are also pass-through taxes that are the obligation of the licensee to collect but may be passed on to the consumer.
These taxes are due and payable on any room or parking privilege irrespective of whether or not the customer is charged for the underlying room or parking privilege.
To what extent is the advertising of gambling permitted in your jurisdiction? To the extent that advertising is permitted, how is it regulated?
Land-based gambling Advertising of gambling operations is permitted in New Jersey but subject to regulation. Online gambling Online gaming advertising is subject to the same regulatory standards as land-based operators.
Developments and reform Legal development. Has the legal status of land-based and online gambling changed significantly in recent years, and if so how?
Land-based gambling The legal status of land-based gambling has not changed significantly in recent years. Online gambling Online gambling was illegal in New Jersey until 26 February The state initially voted against it in , before the law was passed to allow it once again in , but only in Atlantic City.
Two years later, the first casino opened — it was called Resorts Atlantic City. As mentioned, the only legal casinos in New Jersey are found in Atlantic City.
A number of casinos had to close after after the state cut funding to its New Jersey Casino Control Commission, which limited the number of officials who could monitor casinos.
While several had to close, there are still around seven operating today. Besides casinos, there are also seven types of lotteries to play, horse racing to bet on, and other forms of gambling.
In order to be officially allowed, an online casino will need to get approval from the New Jersey Division of Gaming Enforcement.
The good news is that there are quite a few approved casinos, offering a wide variety of online casino games to play. Approved casinos will bear the official sticker from the division, so keep an eye out for it.
However, with online gambling becoming legal, it is likely that this sector will experience huge growth going forward, with more and more online casino getting approval to operate in New Jersey.
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