Compliance Updates
NJ Regulator 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.
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
GLI Becomes First Laboratory to be Accredited in Maranhão, Brazil
Gaming Laboratories International (GLI) has become the first laboratory to achieve accreditation in Maranhão, Brazil. The accreditation allows GLI to perform tests and certification for the gambling and lottery industry interested in working with lottery and fixed-odds betting operators in the state of Maranhão.
The milestone is the latest in a series of regulatory achievements for GLI in Brazil. Lottery of the State of Maranhão is the third jurisdiction in Brazil to accredit laboratories, and GLI is accredited in all and the first to be authorized in all.
Cassiano Pereira Junior, president of Maranhão Parcerias (Mapa), highlighted the importance of the partnership between the Maranhão State Lottery (Lotema) and GLI. “Every day we strive to make Lotema even better, providing greater security for its users. The partnership with GLI is a concrete way of achieving this goal, as its certification laboratories play an important role for the gaming and lottery industry, guaranteeing the conformity, security, and integrity of the products and systems used by Lotema,” Cassiano explained.
“We are grateful to the Lottery of the State of Maranhão for granting GLI the laboratory accreditation, becoming the first to be authorized in Maranhão. It is extremely gratifying to see how Lotema empower themselves by trusting the technical compliance process to provide transparency, integrity, and accountability to all the industry stakeholders through the certification process. The laboratory accreditation is the first step for a successful implementation of the certification based on jurisdictional standards, and the reason why we at GLI take this step very seriously and with great priority every time a new jurisdiction opens. We feel responsible for being part of the solution towards a fast and efficient implementation of regulations, thus supporting further local industry development and sustainable growth. We are grateful to Lotema and excited to be part of its thriving industry,” said Karen Sierra-Hughes, Vice President of Latin America, Caribbean, and Spain.
GLI has been working with regulators, lotteries, and industry stakeholders across the Latin American and Caribbean region for more than 26 years in their efforts toward regulation, sustainable growth, and eradicating illegal gaming. In Brazil, GLI has been side by side with government entities and all industry stakeholders for nearly 20 years, participating in public hearings in the Senate, Chamber of Deputies, and State government level, and in recent years, adding strategic local representation to strengthen their local support.
Compliance Updates
Betano Receives Licence to Operate in Colombia
Kaizen Gaming Colombia, owner of the Betano.co brand, was authorized by Coljuegos to operate online betting in the country. With this new operator, there are now 16 web platforms that have the approval of the entity to market games of chance online.
“We continue to strengthen the online gaming industry. We hope that, with the entry of this new operator, we can continue to increase transfers for the health of Colombians. At this time, the platform is already operating for the betting public,” said Marco Emilio Hincapié, president of Coljuegos.
The entity is also in the process of authorizing an additional operator called Bingo Casino, which is expected to begin offering bets in the coming weeks.
It is worth mentioning that, by 2024, it is estimated that online betting portals will pay around $419,527 million to Coljuegos for exploitation rights, which represents an increase of 31% compared to the same period in 2023. All of these resources are transferred to the health system.
“We are seeing that online betting is a sector of the economy that has driven the growth of the country’s Gross Domestic Product. That is why we are working to make the market even more attractive and to provide more options to bettors,” said the president.
According to financial projections, this new operator is expected to pay Coljuegos around $21.513 billion over the next five years for operating rights and administration costs, resources that can be transferred to subsidize health and scientific research.
Compliance Updates
Chris Christie bets on Texas to approve OSB in 2025
Former New Jersey Governor Chris Christie has backed Texas to legalise online sports betting in the state’s next legislative session.
Christie helped pave the way for sports betting liberalisation across the US by bringing the Supreme Court case that led to the repeal of PASPA.
The case was fought and won by prominent conservative lawyer Ted Olson, who Christie hired to argue the case for states to make their own decisions on sports betting. Olson died last week at the age of 84.
After Missouri became the 39th US state to legalise sports betting in some capacity, attention has quickly turned again to the big three states of Texas, California, and Florida.
“I think it’ll happen in Texas in the next legislative session,” said Christie, speaking to Covers.com. The next session is due to commence in Texas on January 14, 2025.
Christie is less confident about California, however, where competing sports betting ballots failed in 2022 amid a bitter dispute and lobbying war between online operators and local tribes.
California is seen as essential to the future prospects of US sports betting operators, given its size and wealth and dramatic impact on the country’s total addressable market (TAM).
“I don’t know about California,” said Christie. “This really takes gubernatorial leadership, and Gavin Newsom has got to decide if this is one of the issues he wants to lead on.
“Without gubernatorial leadership, the legislature won’t do it because they’re pulled like taffy in too many directions by too many different interests. Without the governor pushing for it, I just don’t think it’ll happen.”
Despite another potential setback in California, Christie has backed sports betting to penetrate pretty much every state eventually.
“I really believe sports betting is inevitable to go just about nationwide, because people in America love their sports, they just do,” he said. “I think it is in the leagues’ best interests to grow their audience. The government gets some piece of the pie out of that which they enjoy, and the public seems to be pretty happy for the most part.”
Depending on expansion, US sports betting could, in theory, reach every state. It would then become a national issue, but Christie has warned the federal government not to interfere.
“Let the states handle it,” he said. “The states are doing fine. You haven’t heard of anything awful or irreversible happening since each state has been involved and they should have the ability to decide whether they want gambling or not.
“I don’t think the federal government should have anything to do with it and I don’t think they ever should have. I don’t think they have to be babysitters for the governors of the country.”
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