United States: The International Comparative Legal Guide to Gambling 2015: USA – New Jersey

1 Relevant Authorities and Legislation

1.1 Which entities regulate what type of gambling activity in New Jersey?

Casino gaming is regulated by the Casino Control Commission ("CCC") and the Division of Gaming Enforcement ("DGE"). The CCC consists of three members nominated by the Governor and approved by the Senate. The CCC is an independent agency. No more than two members may be of the same political party. The DGE is headed by a Director, who is also nominated by the Governor and is subject to Senate confirmation. The Director of the DGE reports to the Attorney General who reports to the Governor. The CCC issues casino licences and the DGE issues all other types of licences, including Internet Gaming Permits and registrations and licences to persons who provide goods or services to a casino. The DGE also is responsible for investigating all licence applications and for monitoring compliance with and enforcing the requirements for casino gaming. Horse racing is regulated by the Racing Commission. The Lottery Commission regulates the lottery. Bingo and raffles are regulated by the Legalized Games of Chance Control Commission.

1.2 Specify all legislation which impacts upon any gambling activity (including skill and social games), and specify in broad terms whether it permits or prohibits gambling.

The New Jersey Constitution prohibits all forms of gambling unless authorised by a public referendum. Any gambling not authorised by the Constitution and enabling legislation is a crime. For the purposes of the criminal offence of illegal gambling, three elements must exist: consideration; chance; and prize. Chance must be a material element, but need not be the dominant element. For example, a New Jersey court has held that wagering on a backgammon tournament is a crime because chance in the form of the use of dice is a material element of the game. However, wagering as a player only is not a crime. Therefore, social games that do not involve all three elements of gambling are not illegal or regulated in New Jersey.

The Casino Control Act authorises casino gambling, including slot machines and table games, and intrastate Internet wagering. The Lottery Law authorises the state to conduct non-electronic numbers and other lottery games. Various statutes authorise pari-mutuel wagering on standardbred and thoroughbred horse racing, simulcasting, off-track betting and account wagering. Bingo is authorised under the Legalized Games of Chance Commission Law and the Bingo Licensing Law. Raffles are regulated under the Raffles Licensing Law. Only charitable organisations may offer bingo or conduct raffles and only the state can conduct a lottery.

2 Application for a Licence and Licence Restrictions

2.1 Who can apply for a licence to supply gambling facilities?

With respect to casino gambling, including intrastate Internet wagering, only the owner or manager of an approved casino hotel that contains at least 500 hotel rooms and meets other requirements is eligible to hold a casino licence and conduct gaming. Subject to fulfilling registration or licensing requirements, anyone may provide goods or services to a casino. All suppliers to a casino must register with the CCC and the DGE by providing information regarding ownership, officers and directors. The registration requirements also apply to persons who provide goods or services to an Internet gaming platform provider if such goods or services relate to intrastate Internet gaming in New Jersey. There are then two levels of licensure that may also apply depending upon the type of product or services provided. Anyone who supplies products or services directly related to casino or gaming activity must be licensed as a gaming-related casino service industry enterprise. This category includes manufacturers and distributors of slot machines, cards, dice and similar products that have an impact on the results of gaming activity or the calculation of gaming revenue. Providers of Internet gaming software, hardware and platforms also fall into this category. Suppliers of goods or services ancillary to gaming, but not included in the category of gaming related, must be licensed as an ancillary casino service industry enterprise. Providers of products and services not directly related to or ancillary to gaming do not have to be licensed.

2.2 Who or what entity must apply for a licence and which entities or persons, apart from an operator, need to hold a licence? Are personal and premises licences needed? Do key suppliers need authorisation?

Any person or entity directly or indirectly owning 5% or more of a casino and its directors and certain officers must obtain a licence or similar approval. Certain key and other employees of a casino must also be licensed.

Suppliers of gaming equipment and ancillary equipment, including Internet gaming software, hardware and platform providers, must be licensed as well. Any person directly or indirectly owning 5% or more of such an entity, its inside directors, any outside directors who serve on an executive or audit committee, sales persons and their supervisors, and certain officers must be found qualified.

Owners of 5% or more of an applicant may be waived from the qualification requirement if they qualify as an institutional investor and certify that they will not attempt to influence or affect the affairs of the applicant. Institutional investors is a defined term and includes Investment Companies and Investment Advisors registered under United States securities laws, government pension funds, banks and similar companies. Institutional investors may hold 25% or more of the equity of an applicant without being qualified. The applicant does not need to be a publicly traded company in order for an institutional waiver to be available. Owners of 5% or more who are not institutional investors may be waived from the qualification requirement if they demonstrate that they do not have the ability to control the company, but anyone who owns 5% or more of a publicly traded company is presumed to have the ability to control. Officers may be waived from the qualification requirement if they are not significantly involved in and have no authority over the conduct of business with a casino.

2.3 What restrictions are placed upon any licensee?

Licences may be conditioned upon many factors, including compliance with various laws. While issued for indefinite periods, licensees must be reinvestigated periodically to ensure compliance with licensing requirements.

2.4 What is the process of applying for a gambling licence?

For both casino and gaming-related casino service industry enterprise licences, an entity, and certain persons associated with the entity, such as certain 5% or greater owners, directors and officers, and any key employees, must complete comprehensive licence application forms and be investigated. The applicant and any holding companies must file a Business Entity Disclosure Form. This form requires disclosure of information regarding jurisdiction of formation, current and prior addresses, description of the business, classes of ownership interests, current and former directors and officers, profit sharing, bonus and retirement plans, long- and short-term debt and the holders thereof, options, bank accounts, suppliers, stock held by the company, criminal history, violations of anti-trust and securities laws, bankruptcy, litigation, licences, financial statements and tax returns. Individuals must file a Multi Jurisdictional Personal History Disclosure Form. This form requires disclosure of certain identifying information such as date of birth and residences since the age of 18 or the prior 15 years, current and any prior marriages, names and addresses of children and certain other relatives, military service, educational data, employment history for the last 20 years or since the age of 18, licences, criminal history, assets and liabilities including a current net worth statement, and references. A Supplement to the Multi Jurisdictional Personal History Disclosure Form, which requires the filing of tax returns for the last five years and other information, must also be filed by individuals. The Supplement also requires the execution of a release authorisation that allows the DGE to obtain information from anyone, including banks and taxation authorities. Individuals must also submit fingerprint cards so that criminal record checks can be performed.

After the filing of all required application forms, the DGE will send both entity and individual applicants a letter requesting the applicant to make available for inspection documentation supporting the information in the application forms, such as bank and brokerage statements, bills of sale, deeds, and wills. The next step in the process is the conduct of a field investigation by the DGE. In a field investigation, the DGE will interview persons associated with the applicant entity and review relevant documentation. Interviews may be informal or under oath and transcribed. The DGE will also contact law enforcement agencies, taxing authorities and other state and federal authorities. At the conclusion of its investigation, the DGE will issue a written report stating its position on the licence application. In order to be issued a licence, an applicant must demonstrate by clear and convincing evidence that it possesses good character, honesty and integrity and financial stability, integrity and responsibility. If the DGE recommends that the application be denied, the applicant has the right to appeal that determination, initially to the DGE and then to the CCC.

In its discretion, the DGE may permit an applicant for a gamingrelated casino service industry enterprise licence to conduct business with a casino prior to licensure.

Ancillary casino service industry enterprise licence applicants must complete similar, but somewhat less extensive, licence application forms.

2.5 Please give a summary of applicable time limits and revocation.

Generally, licences are issued for indefinite periods, but are subject to suspension or revocation. Licences may be suspended or revoked for violations of regulatory requirements or failure to comply with licensing standards.

2.6 By product, what are the key limits on providing services to customers?

All gaming equipment must meet certain minimum standards set forth in the DGE's regulations. Additionally, gaming equipment must meet certain technical standards established by the DGE's Technical Services Bureau ("TSB"), and gaming equipment is thoroughly tested by the TSB before it may be used in casino operations.

2.7 What are the tax and other compulsory levies?

Casinos must pay a tax of 8% of gross gaming revenue on casino games and a tax of 15% on Internet wagering. In addition, a casino must either make investments in certain eligible projects in an amount of 1.25% of gross gaming revenues and 2.5% of Internet gaming revenues or pay an additional tax of 2.5% of gross gaming revenues and 5% of Internet gaming revenues. Casinos must also pay for the costs of investigation, certain other fees, and business taxes. Gaming-related casino service industry enterprise licence applicants must pay a $5,000 application fee, an additional fee of $5,000 if the time spent on processing the licence application exceeds 333 hours, an additional fee of $5,000 if the time spent on processing the licence application exceeds 667 hours, and an additional fee based on the hourly rates of the regulators if the time spent exceeds 1,000 hours. Applicants for an Internet gamingrelated casino service industry enterprise licence must pay the entire cost of the investigation and processing of the application.

2.8 What are the broad social responsibility requirements?

Only persons over the age of 21 may gamble. Persons may voluntarily subject themselves to exclusion from gambling activities. All casino advertising must contain information regarding access to problem gambling programmes.

2.9 How do any AML financial services regulations or payment restrictions restrict or impact on entities supplying gambling?

Anti-Money Laundering ("AML") laws governing casino operations are promulgated and administered by the federal government under the Bank Secrecy Act. Enforcement of AML laws is a primary responsibility of the U.S. Department of Treasury's Financial Crimes Enforcement Network ("FinCEN"). In recent years, FinCEN and the Office of the U.S. Attorney have substantially increased their civil and criminal AML enforcement efforts with respect to U.S. casinos. In 2013, for example, a casino entered into a non-prosecution agreement and agreed to pay approximately $47 million to conclude an investigation into the casino's alleged failure to alert authorities that a high-stakes gambler, who was later linked to international drug trafficking, made numerous large and suspicious deposits with the casino.

3 The Restrictions on Online Supply/Technology Support/Machines

3.1 Does the law restrict, permit or prohibit certain online activity and, if so, how?

New Jersey only permits intrastate Internet wagering between persons who are physically present in New Jersey and casino licensees holding an Internet gaming permit. Mobile wagering is also permitted anywhere on the premises of a licensed casino hotel facility. All other wagering over the Internet is a criminal offence.

3.2 What other restrictions have an impact on online supplies?

New Jersey does not have a "bad actor's" clause in its law. However, the prior conduct of a licence applicant, including compliance with all laws, is a factor considered by regulators in determining whether to issue a licence.

Additionally, the growth of intrastate Internet wagering in New Jersey has been impaired by the unwillingness of some banks to process credit card transactions to fund Internet wagering accounts because of compliance concerns with the Unlawful Internet Gambling Enforcement Act of 2006 ("UIGEA"), a federal statute that bars the processing of financial transactions for illegal online wagering activities. Although intrastate Internet wagering in New Jersey is a lawful activity and thus the processing of financial transactions for such activity does not run afoul of UIGEA, some banks have nevertheless opted to not process such transactions out of an abundance of caution due to the lack of guidance from federal law enforcement authorities.

3.3 What terminal/machine-based gaming is permitted and where?

All types of machine-based gaming are permitted in New Jersey casinos. Local area network linked progressive slot machines, wide area network linked progressive slot machines and electronic table games are permitted in New Jersey.

4 Enforcement and Liability

4.1 Who is liable for breaches of the relevant gambling legislation?

The DGE is responsible for violations of gaming laws by licensees. The DGE may commence a disciplinary action against a licensee by filing an administrative complaint against the licensee. The licensee has the ability to contest the allegations of the complaint in a fact-finding hearing before the DGE. Casinos may not be fined more than $100,000 per violation. Violations of the gaming laws by non-licensees are prosecuted criminally by state law enforcement authorities.

4.2 What is the approach of authorities to unregulated supplies?

The DGE strictly enforces the licensing requirements for suppliers. Only licensed suppliers may distribute gaming equipment and all gaming equipment must be approved by the DGE prior to distribution.

4.3 Do other non-national laws impact upon enforcement?

No, there are no non-national laws impact enforcement.

4.4 Are gambling debts enforceable in New Jersey?

Casinos are authorised to issue credit to patrons. Gambling debts legally incurred by casino patrons are enforceable.

5 Anticipated Reforms

5.1 What (if any) intended changes to the gambling legislation/regulations are being discussed currently?

Currently, casino gaming is limited to the City of Atlantic City. Some legislators support allowing casino gaming in the northern part of the State. The State has also challenged, unsuccessfully so far, a federal law that prohibits sports betting in New Jersey.

This article appeared in the 2015 edition of The International Comparative Legal Guide to: Gambling; published by Global Legal Group Ltd, London.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Nicholas Casiello, Jr.
In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.