Interesting NJ Online Gambling Laws

New Jersey is known to have some of the strictest laws governing online casinos in the United States. Learn about some of the most interesting New Jersey online gambling laws and how you can stay on the right side of the law.

The casinos of Atlantic City, New Jersey, have helped lead the way when it comes to embracing online gambling. While other cities have been somewhat antagonistic toward gambling over the internet, Atlantic City saw an opportunity and jumped at the chance to establish an online presence.

That has ended up paying off well for land-based casinos with an online component. Golden Nugget, which has lost money for years in its physical casino, has an online casino that’s one of the most financially successful operators in the country.

New Jersey is also known for having strict regulatory guidelines for online gaming, which means that any online casino that has gotten its New Jersey license could then easily apply for a license in any other state that allows online gambling. On the other hand, not getting approval in New Jersey would raise some red flags for other states. Ultimately, it behooves any online gaming site to go through New Jersey first and then spread throughout the U.S. from there.

Those strict state guidelines also extend to your potential experience as a gambler. Learn some of the limitations (and opportunities) when it comes to New Jersey online gambling laws.

You Have To Be 21 Years Old

To open an account with an online casino, a player must be at least 21 years of age. This rule coincides with the broader state law that any gambler must be 21 and up (rather than 18, which other states have set as their age threshold).

You Don’t Have To Be a Permanent NJ Resident

While some online casinos might ask for a state driver’s license, you don’t have to be a legal resident of New Jersey to gamble at their online casinos. Instead, you only need to be physically located within the state’s borders while gambling.

You Can’t Gamble at a NJ Online Casino If You Leave the State

Even if you’re a resident and have a legally registered account, you cannot gamble at a New Jersey-based online casino if you leave the state’s borders. Online casinos use IP verification and geo-location tracking to determine a player’s location to ensure that no one is skirting the law.

All Legal NJ Online Casinos Must Be Partnered With a Land-Based Casino

Any licenses for New Jersey casinos are submitted through the gambling establishments in Atlantic City. Only land-based casinos have the right to apply for a permit within the state, so some Atlantic City casinos have established legal partnerships with European operators. One example is Caesars’ partnership with 888 Online Casino, which is the world’s first exclusively online casino and is based in Gibraltar.

Online Casinos Have a Higher Tax Rate

As of 2019, gaming websites in New Jersey are charged a 15% tax on their gross revenues, as opposed to the 8% that land-based casinos are charged on their gross revenues.

According to the American Gaming Association, taxes from gambling in New Jersey are used exclusively for the elderly. The funds go to reductions in property taxes and utilities, as well as expanded health services, for eligible senior citizens and disabled residents.

You Can Exclude Yourself From Gambling at all NJ Casinos

The Council on Compulsive Gambling of New Jersey collaborates with the state’s Division of Gambling Enforcement to offer a voluntary self-exclusion program to help people who are struggling with gambling addiction. This applies to both physical casinos and online casinos.

If you’ve put yourself on the self-exclusion list and you try to gamble, the casino or gambling site will refuse to accept your wagers. If you are caught gambling, you’re subject to forfeiture of any winnings, and you’ll be escorted from the floor or removed from the site.

Offshore Casinos Are Frowned Upon in NJ

Most likely in an attempt to keep revenue within the state, New Jersey has been continuing to dissuade offshore online casinos from taking bets from U.S. customers. In 2019, New Jersey Division of Gaming Enforcement Director David Rebuck said that any company that takes offshore bets will never get licensed in New Jersey.

Back in 2016, the DGE successfully blocked any websites originating with the Kahnawake Gaming Commission (which is based in Quebec) from offering online betting to New Jersey residents. That meant that sites like Bovada, a leading provider of offshore online sports wagering, could no longer operate out of the Kahnawake data center.

Of course, this doesn’t apply to online casino companies that have legal partnerships with Atlantic City casinos. Betfair has headquarters in London and Dublin, but they’re partnered with Caesars, while PartyCasino runs out of Gibraltar but has a partnership with Borgata.

New Jersey Shall Continue To Lead the Way

With New Jersey basically being the gold standard when it comes to online gambling in the United States, more and more casinos will try to get licensure in the state as time goes on. Keep an eye out for any new casinos that might offer some great sign-up bonuses, but always make sure you’re dealing with a reputable casino that has gotten approval from the state of New Jersey.