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Online Gaming in New Jersey (USA)

Authored by Hensel Grad (Published Feb 2023)

Overview

Open

New Jersey (USA) Online Gaming Overview

Regulated
New Jersey offers a full range of regulated gambling opportunities including land-based casinos, land-based and internet sports wagering, internet casino, fantasy contests, esports (limited), horse-racing and lottery. Internet casino gambling was legalised in New Jersey in 2013 while sports wagering began operations in 2018. Gross gaming revenue in New Jersey was close to USD 5B in 2021 making New Jersey one of the top performing gaming jurisdictions in the U.S.

Market size
With a population base of more than 9M, New Jersey is the 11th largest state in the U.S. It has nine land-based casinos in Atlantic City and has also authorised icasino (also known as online or interactive gaming), sports wagering and fantasy gaming. At the close of 2021, 30 internet casinos and 21 online sports books were operational in New Jersey.

Competitive landscape
With the regulated igaming industry in New Jersey launching in 2013 and the sports wagering industry starting soon after the fall of the Professional and Amateur Sports Protection Act in 2018, there are numerous operators offering icasino and online sports wagering in the state through partnerships with land-based casino operators.  There are also opportunities for both established and new icasino and sports wagering companies to enter what is a still growing market that not only has a large population but also a reputation as a gambling destination.

Localisation
New Jersey’s gaming industry accepts most payment methods for players to fund their accounts. Advertising is available through traditional print and broadcast media and through digital resources including through marketing affiliates.

Top Key Attractions and Challenges
Attractions

  • Atlantic City, where the state’s land-based casinos are located, has a reputation as a gambling destination.
  • There are opportunities to partner with land-based casinos to offer online gaming and sports wagering activities.

Challenges

  • Land-based, icasino and sports wagering has expanded to many states in the Northeastern portion of the U.S. bringing increased competition to New Jersey. Chief among this competition is New York, which recently launched sports wagering activities that have impacted sports wagering revenue in New Jersey.  New York is also considering authorizing land-based casinos in closer proximity to New Jersey than are currently available.

Licensing & Regulation

Well-regulated / Unregulated (Open)

New Jersey (USA) Online Gaming Licensing & Regulation

Icasino and sports wagering owners and operators, certain land-based and icasino employees and companies doing business with licensees must obtain their own licences and meet the statutory requirements of good character, honesty and integrity.  Only land-based casinos are eligible to hold icasino permits.  Land-based casinos and racetracks are authorised to offer sports wagering.  Land-based casinos are able to partner with...

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Enforcement

Regular / Punitive

New Jersey (USA) Online Gaming Enforcement

Violations of the Casino Control Act by licenced entities are strictly enforced by the New Jersey Division of Gaming Enforcement. Those that operate and promote unlicensed gambling are subject to criminal prosecution at the state and federal level.

Regulating bodies
The New Jersey Division of Gaming Enforcement is a law enforcement agency and the investigative arm of the casino...

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Marketing

Permissive

New Jersey (USA) Online Gaming Marketing

There are limited restrictions on advertising in New Jersey. All gambling ads must include a problem gambler message that includes a helpline number. No advertisement can be false or misleading.

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Fees

High

New Jersey (USA) Online Gaming Fees

Application fees
The New Jersey Division of Gaming Enforcement posts a fee schedule online.

For online gaming related activities, the Division of Gaming Enforcement charges the actual cost of investigation based on the hourly fees in the fee schedule.

In addition to application fees, there are additional fees including but not limited to:

Internet Gaming Permit

Initial deposit – USD 100,000...

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Taxes

Average

New Jersey (USA) Online Gaming Taxes

Licence taxes
Internet gaming is taxed at a rate of 15% of gross revenue.  In addition, an investment alternative tax on Internet gross gaming revenue is 5% and the community investment alternative tax rate is 2.5%.

There is an 8% tax on casino gross revenues. There is also an investment alternative tax of 1.25% of gross revenues levied on...

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Future Outlook

Positive

New Jersey (USA) Online Gaming Future Outlook

New Jersey is one of only a few states in the United States to offer the full range of gaming including land-based casinos, icasino, online and retail sports wagering, fantasy contests, esports (limited), racetracks and lottery. New Jersey has been at the forefront of launching new gaming verticals and initiatives and is expected to continue being a leader. With a...

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Legal Expert

Hensel Grad P.C.

Office locations Pennsylvania, USA

Hensel Grad is a boutique gaming law firm offering counsel and advisory services to companies interested in launching or expanding business in the U.S. Hensel Grad is experienced at helping companies navigate the various U.S. gaming jurisdiction laws and regulations. From strategy to licensing to compliance, Hensel Grad is available to assist gaming companies in achieving their U.S. goals.

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Contact New Jersey (USA) - Hensel Grad P.C.

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