New Jersey is putting online gambling consumer protections front and center with the introduction of four new Senate bills targeting responsible gambling reforms.
Combined, the bills would prohibit lucky cola casino and sportsbooks from sending promotional push notifications and text messages, and from accepting credit card payments. They would also require those operators to set strict Know Your Customer (KYC) requirements and designate at least one employee as a “dedicated responsible gambling lead.”
Introduced yesterday by Sens. Andrew Zwicker (S3401) and Paul Moriarty (S3419, 3420, 3461), the bills follow a spate of scandals that reignited existing scrutiny of the online gambling industry.
All four bills are now with the Senate State Government, Wagering, Tourism & Historic Preservation Committee.
Bills Aim to Boost Consumer Protections
Taken together, the new legislation represents a substantial effort to better protect New Jersey consumers from gambling-related harm. Separately, each would move the state toward tighter consumer protections.
Specifically, Zwicker’s S3401, “prohibits casino licensees, their Internet gaming affiliates, and sports wagering licensees from utilizing push notifications or text messages for promotional purposes.”
According to the bill text, the fine for each violation is a minimum of $500.
Meanwhile, two of Moriarty’s bills, S3419 and 3420, are specific to online sportsbook operators.
The first, S3419, requires operators to adopt and communicate rules around account limitations, including time limits, wager amounts, and deposit and withdrawal restrictions.
Further, the rules “must be submitted to and approved by the Division of Gaming Enforcement and made publicly available for the awareness of all patrons.”
The legislation would also require that licensees and contracted operators provide written notice and an explanation for any limitations imposed on a wagering account. They will also have to periodically review limitations in accordance with the division’s guidelines and report annually on the frequency and types of limitations imposed.
Notably, last month, Assembly members Dan Hutchison, Michael Venezia, and Cody Miller introduced A4002, this bill’s companion.
The other bill, S3420, prohibits sportsbook operators from offering any “promotional credits, incentives, bonuses, complimentaries” designed to induce customers who are “currently utilizing any responsible gaming programs.”
Notably, this includes all responsible gaming programs — including, but not limited to, self-exclusion programs, time or wager limits, and deposit restrictions — offered by sportsbooks or the state.
As with Zwicker’s bill, violations would be subject to fines of at least $500 per offense.
In an email to Moriarty, Gambling Insider asked if he had any concerns that this measure could encourage players to avoid utilizing existing RG tools. As yet, we’ve not received a response.
Legislation Would Establish Phased Interventions
Moriarty’s third bill, S3461, is the most comprehensive of the four new pieces of gambling-related legislation under consideration.
Most notably, the 26-page bill prohibits online casinos and sportsbooks from accepting credit card deposits, something New Jersey law currently allows.
The bill also codifies certain administrative rules, including KYC requirements, and proposed responsible gaming rules. The changes, as outlined in the text, establish a framework for operators to use data to “identify, monitor, and intervene with patrons who may be exhibiting certain problem gaming behavior.”
As previously mentioned, the bill further requires operators to designate a responsible gaming lead to oversee the identification of at-risk patrons, maintain records, and provide responsible gaming resources. They will also be responsible for ensuring that direct marketing and promotions exclude those customers.
The legislation also would establish a phased intervention plan for those exhibiting gambling problems. Phases progress from informational outreach and mandatory education to direct personal contact, temporary account suspension, and, if problem gaming is confirmed, account closure and referral to professional help. And operators must retain records of all reviews and interventions for regulatory inspection.
Finally, the bill establishes requirements for withdrawal cancellations to prevent impulsive gambling behavior and allows regulators and operators to add or tighten risk triggers. It also requires operators to collect gender-identification data for state reporting on problem gambling trends.
Gaming Bills Pile Up in Committee
These latest bills come just weeks after Sen. Kristin Corrado introduced S3200, which would establish a dedicated hotline to report possible violations of sport integrity. That bill would also give the Division the power to ban individuals who have “engaged in harassment or coercive behavior related to sports wagering.”
Late last year, Moriarty tabled a bill that would have banned microbetting, but it failed to pass. In mid-January, he and Sen. Patrick Diegnan reintroduced that bill as S2160
Both bills also currently sit with the State Government, Wagering, Tourism & Historic Preservation Committee.
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