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Compliance Updates

NJ Regulator Announces New Multi-Faceted Efforts to Curb Problem Gambling

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NJ Announces New Multi-Faceted Efforts to Curb Problem Gambling

 

Attorney General Matthew J. Platkin and Division of Gaming Enforcement (DGE) Director David Rebuck announced several new initiatives to bolster the office’s existing responsible gaming efforts: establishing a new position dedicated to responsible gaming, setting new advertising standards for operators, and simplifying access to self-exclusion for players struggling with a gambling disorder.

Attorney General Platkin made the announcement as he delivered the keynote speech before regulators and industry representatives at the East Coast Gaming Congress held at the Hard Rock Hotel & Casino in Atlantic City.

These latest efforts build on DGE’s groundbreaking Responsible Gaming Initiative announced in early February, which utilizes data on players’ gaming activity to determine if they might be suffering from a gambling disorder and offers them help.

“As New Jersey’s gaming and sports wagering industries continue to grow and mature, so do our obligations to assist patrons who are at risk for problem gambling,” said Attorney General Platkin. “By establishing a dedicated, senior level position within the Division of Gaming Enforcement to focus on responsible gaming, we are sending a clear message that we take this work seriously – and so should the industry. Our other initiatives announced today will help protect consumers and make it easier for individuals to access the help they need when their gaming behavior becomes problematic.”

“We have seen tremendous growth in sports wagering and online gaming in New Jersey,” said DGE Director David Rebuck. “In the face of that boom, we have a duty to protect the public from advertising that could be misleading or harmful. And for those in the grip of gambling addiction, we need to offer as many exit ramps from their condition as possible.”

DGE will establish a new position, the Responsible Gaming Coordinator, who will handle all issues impacting responsible gaming and ensure progress on existing initiatives. The Coordinator, which is to be filled by an experienced attorney, will report directly to the DGE Director and identify gaps and problems before engaging with stakeholders to develop recommendations to advance the state’s responsible gaming work.

The announcement comes as online and sports gambling continue to gain popularity in New Jersey. DGE’s March 2023 gaming revenue results showed that for that month, online gaming win reported by casinos and their partners was $165.7 million, a rise of 17.8 percent compared to $140.7 million for March 2022. Sports wagering gross revenue reported by casinos, racetracks, and their partners was $93 million for March 2023, a 40.1 percent increase compared to last March.

In addition, the initiatives announced today include new online and sports gambling advertising standards, which make it clear that operators must make responsible gaming a priority through the following:

  • displaying prominently New Jersey’s 1-800-GAMBLER hotline in their ads;
  • ending dubious promises of “guaranteed wins” or “risk-free” bets if the patron will not be fully compensated for the loss of their funds;
  • making wagering requirements clear in their terms and conditions;
  • limiting advertising in locations where it would entice those under 21 years of age to play; and
  • providing the public with the ability to swiftly opt out of direct advertising.

The full list of 15 advertising best practices can be found here.

DGE will also be making it easier for players with problem gaming behaviors to exclude themselves from gaming.

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New Jersey’s existing voluntary self-exclusion program allows players to voluntarily prohibit themselves from accessing casinos’ gaming floors through in person appointments with specially trained DGE staff, or from online gaming through DGE’s online application.

Now DGE will be taking it further. Today, Attorney General Platkin announced that DGE will create a video-conference option to make it easier for players to escape from problem gambling without having to leave their homes.

Also, ahead of the busy summer season, DGE will establish a 24/7 hotline dedicated to assisting people with questions about the self-exclusion program and the process for signing up.

“The increase of online gambling opportunities, access and the amount of advertising has put many more people in New Jersey at risk for problem gambling. These measures will help enforce and expand responsible gaming, and will be bolstered with the establishment of a Responsible Gaming Coordinator,” said Felicia Grondin, Executive Director of the Council on Compulsive Gambling of New Jersey. “The standards outlined today reflect the Attorney General and DGE’s resolve to promote responsible play and make help available to those faced with a gambling addiction. We are grateful for the State of New Jersey’s efforts to focus on problem gambling and promote responsible gambling practices; they are needed now more than ever.”

“We congratulate Attorney General Platkin and DGE Director David Rebuck for their continued leadership in responsible gambling. The initiatives announced today further bolster responsible gambling protections and reduce barriers for people seeking help,” said Keith Whyte, Executive Director of the National Council on Problem Gambling. “We hope regulators across the country will emulate New Jersey, including by working with the National Council on Problem Gambling and our state affiliate chapters, such as the Council on Compulsive Gambling of New Jersey.”

Today’s announcements follow the introduction, at the beginning of this year, of DGE’s Responsible Gaming Initiative to monitor player behavior for red flags indicative of a gambling disorder. Player data already captured by operators began being used to uncover potential problem gambling patterns, such as an individual’s gambling time increasing from week to week or a player wagering until they have less than one dollar in their accounts.

Gamblers exhibiting warning signs are now approached using various circumstance-dependent interventions, including progressive responses if the indications of a potential disorder keep recurring after attempts are made to assist. At level one, a patron receives automated outreach regarding responsible gaming resources. If the warning signals continue, the patron is shown a video tutorial explaining responsible gaming and available resources before being allowed to continue gambling. At the third level, the operator’s responsible gaming lead or team will directly contact and address the issue with the patron.

Compliance Updates

Arizona Department of Gaming Launches First-Ever Statewide Campaign to Empower and Protect Consumers

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The Arizona Department of Gaming has launched its first-ever statewide Public Education Campaign focused on protecting consumers, promoting public awareness, and reducing the harms associated with unregulated gambling. This is a significant milestone in the Department’s ongoing efforts to protect consumers and ensure a safe and responsible gaming environment.

Arizona offers a variety of legal, regulated gaming options throughout the state, including tribal casinos, event wagering, fantasy sports, and parimutuel wagering. For 30 years, ADG has safeguarded the integrity of Arizona’s gaming industry through rigorous oversight, licensing, and enforcement in accordance with the Tribal-State Gaming Compacts. This new campaign expands on that mission by educating Arizonans on how to avoid illegal gambling and access support services when needed.

The campaign is designed to inform and empower the public by emphasizing the risks of engaging with unlicensed operators and providing them with tools to identify legal, regulated options. It aims to reduce consumer vulnerability, prevent exploitation, and help individuals make informed decisions if they choose to participate in gaming activities.

The campaign kicks off with a series of Public Service Announcements (PSAs), developed in collaboration with the Arizona Media Association, which will be aired across TV, radio, print, and digital platforms. Available in both English and Spanish, the PSAs will:

• Educate the public on how to identify legal, regulated gaming operators in Arizona

• Emphasize consumer protection and the safeguards provided by regulated gaming environments

• Highlight the role regulated gaming plays in supporting Arizona communities and essential services

• Promote the 1-800-NEXT STEP helpline, which connects individuals to confidential, 24/7 support for problem gambling.

To complement the PSAs, ADG has launched the Check Your Bet webpage, which serves as a centralized resource to verify regulated gaming and access consumer protection tools. The webpage includes:

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• A searchable list and interactive map of authorized Tribal Casinos in Arizona

• A searchable list and interactive map of licensed Event Wagering and Fantasy Sports Operators and their retail locations

• Information on Advanced Deposit Wagering Providers (ADWPs), Off-Track Betting (OTB) locations, and permitted horse racing tracks in Arizona

• How to access the Division of Problem Gambling’s Helpline, a confidential Problem Gambling Self-Screening Quiz, and additional supportive resources

• How to request Self-Exclusion, a voluntary program to prohibit oneself from Tribal Casinos and Event Wagering and Fantasy Sports Contests

• Guidance on submitting tips about suspected illegal gambling to the Department and filing consumer complaints with the Arizona Attorney General’s Office.

“We are proud to celebrate 30 years of providing world-class gaming regulation and consumer protection. This campaign is about empowering Arizonans who choose to participate in gaming with the knowledge to make informed, responsible decisions. As illegal and unregulated options on the market increase, the Check Your Bet webpage serves as a key resource for the public to verify licensed operators and access support. By directing viewers from our PSAs to this tool, we’re helping ensure people not only play safely, but also know where to turn if they or a loved one are struggling with problem gambling,” said Jackie Johnson, Director of the Arizona Department of Gaming.

Since its founding in 1995, the Department has worked tirelessly to ensure that Arizona’s gaming industry operates with transparency, integrity, and responsibility. The campaign will run through the end of March 2026 and reflects ADG’s commitment to a safe, transparent, and well-regulated gaming landscape in Arizona.

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Compliance Updates

Final CFG USA 2024 Online Gambling Report Confirms: Crime Wins After Years of Legalization

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The Campaign for Fairer Gambling (CFG) has released 2024 CFG USA State Supplement #2: All States, the final report in its landmark CFG USA 2024 Series, warning that the rapid expansion of legal online gambling is fueling more gambling and higher consumer losses – all without displacing crime from the total marketplace.

The analysis, produced by technical marketplace intelligence platform Yield Sec, offers the most comprehensive national and state-by-state breakdown ever produced across the US online sports betting, casino, and poker marketplaces. It shows that states with more legal operators record the highest Gross Gambling Revenue (GGR) per capita as a percentage of income – but, illegal operators continue to dominate, with 74% of total GGR across US online gambling being stolen by crime during 2024.

In 2024, the total US online gambling marketplace was worth $90.1 billion, of which $67.1 billion (74%) was illegal. The illegal sector grew by 64% year-on-year, outpacing the legal sector’s 36% growth.

There are three states with legalized online sports betting where the market is below the average of 0.31% GGR per capita as a percentage of income for states with no legalization, being Oregon, Maine, and Arkansas. These states have operator numbers of Oregon 1, Maine 2, and Arkansas 3, for an average of 2, below the national average of 9.

There are three states with both legalized online sports betting and casino gaming where the market is below the average of 0.77% of GGR per capita as a percentage of income for states with legalization of online sports betting only, being Delaware, Rhode Island, and Connecticut. These states have operator numbers of Delaware 4, Rhode Island 2, and Connecticut 3 for an average of 3, below the national average of 14.

There is a pronounced correlation between having a small number of legal operators and lower GGR per capita as a percentage of income.

The proponents of legalization assert that having more legal operators is better for competition and implies that this will help reduce the size of the illegal sector. The evidence, contained in CFG reporting from years of monitoring and the most comprehensive study ever conducted upon the US online gambling marketplace at both the national and state levels, contradicts this assertion.

Derek Webb, Founder and Funder of CFG, said: “The onus is on the proponents of legalization to provide an explanation as to how they managed to get it so wrong – at the least, they should apologize to the legislators they influenced based on their misleading representations. There should now be a moratorium on state expansion until effective action reduces illegal revenues and enables effective control of online gambling marketplaces.”

Ismail Vali, founder and CEO of Yield Sec, added: “Decades of illegal online gambling in the USA were meant to end with legalization and regulation. The hope was simple: legal, licensed options in each state would ‘channelize’ the marketplace and eliminate illegal gambling. This has not happened.

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“Seven years after state legalization began in 2018, the US online gambling marketplace remains a fortress of crime, and the zero-sum game hope that legalization and regulation would, on their own, remove crime, has failed. Illegal gambling isn’t one problem – it’s many. You can only control it through process – MPEO: Monitor, Police, Enforce, Optimize. Crime has now stolen hundreds of billions of dollars from American commerce and communities over more than three decades – it’s time to make this end.”

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Compliance Updates

AU10TIX Launches Free Assessment Tool and Readiness Guide to Help Organizations Navigate Child Safety Age Assurance Compliance

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AU10TIX, a global leader in identity verification and fraud prevention, announced the launch of a free Child Safety Age Assurance Risk and Readiness Assessment and Age Assurance Readiness Guide designed to help businesses better understand their risk and tailor their strategy to meet regulatory obligations. They support AU10TIX’s Selfie-based Age Estimation service, which delivers the industry’s most precise and unbiased age assessment in just two seconds.

In the US, federal legislation such as the Children’s Online Privacy Protection Act (COPPA) requires parental consent for users under 13, while the California Consumer Privacy Act (CCPA) mandates age verification for websites accessed by users under 16. Additionally, 19 U.S. states now enforce mandatory age checks for adult content and gambling platforms. Similar regulations are impacting social media and online services in the UK, EU, and Australia.

AU10TIX’s free Child Safety Age Assurance Risk and Readiness Assessment consists of six short questions about an organization’s sector, security measures, and ID verification processes. Upon completion, participants receive a customized Risk Assessment Report outlining key vulnerabilities and practical recommendations for improving compliance. They also receive a comprehensive 13-page Age Assurance Readiness Guide to help them navigate the complex landscape of age verification regulations.

“As age-based regulations expand globally, businesses are actively seeking guidance on how to balance security, compliance, and user convenience. Our new Risk and Readiness Assessment helps organizations identify their unique risks and stay compliant without compromising the customer experience. This perfectly complements our Selfie-based Age Estimation solution, which adds an extra layer of protection to help ensure safe use of our platform by minors,” said Yair Tal, CEO of AU10TIX.

AU10TIX also offers a Selfie-based Age Estimation solution that leverages advanced AI-driven biometric technology to analyze facial features and estimate age without the need for a government-issued ID. It streamlines the experience by requiring only a selfie, cutting verification time to two seconds while delivering the industry’s most accurate age estimates. It simultaneously conducts a liveness check and analyzes the selfie using AI models trained on millions of biometric data points, which accurately estimate age without storing any personal data. By reducing the need for full ID verification, this approach can reduce costs by up to 10x and boost completion rates by 27%.

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