New Jersey is inarguably a front-runner in the world of American online gambling and continues to lead the way for other states to follow. The legalization of online gambling in 2013 marked a pivotal moment in relation to online wagering. This decision was not made easily or without dispute, however, it did move the needle in how states dealt with the governance of online casinos and betting sites.
The fight towards legalization came without its own set of challenges. For a highly populated state, New Jersey had to grapple with federal restrictions, most notably PASPA and the Redistributions of Income Act. New Jersey residents enthusiastically accepted legally offered online slots and the market responded accordingly.
Traditional slot machines quickly became one of the most sought-after products available on regulated sites, especially with players loving the variety and convenience that came along with online gambling. The state’s stance towards regulation brings about market competition, which in turn provides consumer protection. This gamble largely paid off by bringing formerly offshore gambling activities under control.
New Jersey’s deregulation of online gambling has had positive impacts economically as it has driven the online casino market to generate revenue exceeding $150 million yearly in tax revenue to foster spending towards public programs targeted at the elderly and disabled people. The industry has also offered thousands of jobs ranging from tech jobs to customer service.
Atlantic City, which was previously considered economically declining, has benefited from the combination of online and brick-and-mortar casinos, which has helped stabilize the economy as well. Instead of facing competition from online casinos, traditional gambling establishments have benefitted from increasing traffic and opening new avenues for their customer base.
New Jersey has issues with online gambling, regardless of its successes. Geolocation services, for any reason, allow location markers to error, preventing actual users from using the services made available to them. The payment processing is further complicated by some banks's unwillingness to work with gambling payment processing, even when situated within state borders.
Concerns regarding addiction still need significant concern. Even though the state does compel operators to provide self-exclusion options and spending caps, they have been accused of not doing enough to safeguard and aid those who are most vulnerable. As with any emerging conversation, there seems to be a dynamic equilibrium between liberty and consumer protection.
Advanced technology has both positive and negative implications for regulation. New frameworks of gambling offered through virtual reality, as well as potential payments via cryptocurrencies, pose fresh, tantalizing opportunities, but the problems they anchor could be out of the reach of the existing regulation.
Multi-state agreements are among the most groundbreaking new developments for online gambling in New Jersey. The existing agreements with Delaware and Nevada for online poker player pooling are a good example of where further inter-state collaboration can go. They improve player liquidity and market growth while, importantly, maintaining state sovereignty.
Federal changes continue to impact New Jersey's state's regulatory practices. The Department of Justice's interpretations regarding the Wire Act have periodically widened and narrowed the potential for interstate gambling, thus creating intervals of ambiguity for both operators and regulators.
Other jurisdictions deliberating a similar trajectory can learn from New Jersey's practice of regulating online gambling. The State has proven that responsive digital wagering regulation can transform the industry from a clandestine business into a legitimate one. Although some problems continue to exist, the overall situation seems to point towards a workable system that integrates economic growth and social costs.
The “Garden State” shows how flexible regulations can meet technological and market changes with premised consumer protection. New Jersey's proactive stance offers both motivation and guidance for other states seeking to legalize online gambling. It is likely that the further evolution of this regulatory will determine the future of digital gambling for many years to come in America.
