Key Moments:
- The New Jersey Division of Gaming Enforcement has released proposed responsible gaming regulations open for public comment until mid-November.
- Operators must appoint a Responsible Gaming Lead and monitor 10 specific player behavior triggers to identify at-risk players.
- Governor Phil Murphy signed bills to ban sweepstakes casinos in August, and a new bill has been introduced to prohibit micro betting in New Jersey.
Proposed Regulations Target Responsible Gaming Practices
The New Jersey Division of Gaming Enforcement (DGE) has proposed rules that make responsible gambling mandatory for all licensed operators. Announced at an iDEA Growth webinar, the rules aim to turn voluntary internet gaming practices into enforceable regulations.
These regulations, published in the New Jersey Register, are available for public feedback until mid-November.
Key Requirements for Operators
The draft rules require every online operator in New Jersey to appoint a Responsible Gaming Lead to support at-risk players. In addition, operators would be obligated to monitor a set of ten defined behavioral triggers that may indicate gambling issues, including:
- Exceeding deposit thresholds within short periods
- Multiple “cool-off” requests within a specific timeframe
- Three consecutive increases in deposit or loss limits in seven days
- Sudden spikes in session length or bet volume
When a player is flagged for risk, operators are required to follow a three-tiered intervention process:
- Email the player with details on responsible gambling resources.
- Restrict wagering until the player completes a responsible gaming tutorial video.
- Direct communication from the Responsible Gaming Lead through a phone or video call.
If concerning behavior persists, closure of the player’s account may be necessary.
Establishing Uniform Responsible Gaming Protocols
According to McKelvey, these measures have been in development for several years, preceding Governor Phil Murphy’s 2023 executive order that created a Responsible Gaming Task Force. “We’ve been working on them for several years,” she said. “The task force came about in part due to a Rutgers study showing that New Jersey residents had significantly higher rates of problem gambling behaviour than the national average.”
The move is expected to bring consistent responsible gambling practices throughout New Jersey’s regulated online market, many of which are already employed voluntarily by a number of operators.
Structural Challenges and Regulatory Flexibility
McKelvey also drew attention to ongoing challenges in the state, highlighting the absence of a unified self-exclusion list and varying minimum gambling ages: 21 for casino and sports betting, but only 18 for lottery, daily fantasy sports, and horse racing.
She emphasized the need to balance strong protections with the flexibility needed for industry innovation: “As a regulator, we must make sure that the industry meets certain milestones and standards, but we also need to allow flexibility as research and data evolves,” she said.
The DGE regulations include the possibility of further amendments, allowing for additional behavioral triggers based on operator input and data trends.
Regulatory Developments on Sweepstakes Casinos and Micro Betting
In August, Governor Phil Murphy signed bills A5447 and S4282, banning sweepstakes casinos statewide. This move has been criticized by gaming advocates, who argue that it favors traditional casino operators at the expense of consumers and is likely to influence the future direction of online gambling in New Jersey.
Sweepstakes casinos operate with two virtual currencies: Sweeps Coins, which can be purchased or obtained via promotions and redeemed for cash, and gold coins, which have no financial value. This dual-currency approach allowed platforms such as Chumba Casino, LuckyLand Slots, and Global Poker, run by Virtual Gaming Worlds (VGW), to serve customers in jurisdictions where traditional online gambling laws are less defined. Lawmakers, however, have taken a stricter approach than many players, who saw these sites as a way to access casino-style entertainment without directly risking real money.
In a separate initiative, Assemblyman Dan Hutchison has introduced Bill A5971 to outlaw micro betting in New Jersey. The proposed legislation classifies these as wagers on individual plays or specific occurrences within a game and imposes penalties for violations. Hutchison maintains that the fast-paced nature of micro betting promotes impulsive gambling; he pointed to a 277 percent surge in calls to problem gambling helplines since sports betting was legalized as evidence of mounting concern.
Summary of Regulatory Measures
| Regulatory Action | Description | Status |
|---|---|---|
| Responsible Gambling Standards | Mandatory RG lead, player monitoring, three-step intervention | Proposed; open for public comment until mid-November |
| Sweepstakes Casino Ban | Prohibits sweepstakes-based online casino models | Signed into law in August |
| Micro Betting Ban | Would ban wagers on specific actions within a sporting event | Bill introduced; not yet enacted |
- Author
Daniel Williams
