Licenses for Online Gambling in New Jersey: Types and Fees

In New Jersey, the Division of Gaming Enforcement (DGE) oversees all gambling operations. Its responsibilities include:

• Monitoring the activities of licensed operators;

• Determining the amounts of fees;

• Imposing penalties and revoking licenses.

The New Jersey online gaming experience is carefully regulated to ensure fair play and safety for all players. The state’s approach to online gambling sets a standard for responsible gaming, providing players with a secure and regulated environment.

Licensing Requirements

In New Jersey, the operation of any gambling business requires a license, as stipulated by the Casino Control Act and its most recent amendments from February 26. The following individuals or entities must secure this license:

1. Organizers of gambling activities;

2. Employees directly involved in gambling operations or managing companies;

3. Service companies.

Types of Licenses

An online gambling license is valid for one year and must be renewed each year. The Division of Gaming Enforcement (DGE) performs thorough investigations prior to deciding whether to grant a license.

Casino Key Employee Licenses are mandatory for those who play a direct role in gambling operations or the management of a casino.

Licenses can be:

• Temporary — valid for 60 days;

• For one year — requiring annual confirmation;

• [Issued for a duration of five years, this credential is granted to individuals who have fulfilled the Commission's qualifications for a minimum of five consecutive years.]

New employees must complete a qualification form and undergo fingerprinting.

Licensing of Suppliers and Manufacturers

Companies that supply, manufacture, and provide services, along with laboratories that certify software and equipment for gambling venues, must comply with licensing requirements as outlined in Sections 5:12-92 and 93 of the Act.

Authority and Jurisdiction of the New Jersey Commission

The Gaming Commission oversees the operations of licensed operators in New Jersey, including Atlantic City. Its functions are regulated by the state’s Administrative Code.

In New Jersey, both companies and individuals from outside the state can submit applications to start a business.

The Commission operates under the National Center for Responsible Gaming and works closely with local and federal law enforcement, as well as regulatory bodies both in the United States and internationally.

Arbitration and Disputes

As per the law, when a licensee does not address a player's complaint, it is regarded as a dispute. For disputes related to internet gambling, it's necessary to include a copy of the initial complaint made to the licensed operator along with their response.

Refund of Bets

The software used by licensed operators should be set up to ensure that player refunds are at least 83% of the total bets made.

How to Obtain a New Jersey License

The rules surrounding online gambling are outlined in Section 6C of the Act. It is required that any equipment and software utilized by the operator for online gambling be based in Atlantic City or elsewhere in New Jersey. If a company's servers are situated outside of this state, they cannot accept bets from players residing in other states.

Entities that can apply for an online casino license include:

• Businesses with a contract to purchase or already owning a hotel;

• Lessors or tenants of hotels meeting the requirements for a land-based casino;

• Companies or individuals with an agreement with a licensed operator for managing a casino;

• Entities or individuals that possess a hotel featuring an operational casino, or the property on which it stands.

Application Process

Applications for a license are evaluated by the Commission based on the following criteria:

• The total number of licensed gambling establishments in the state;

• The total area of the property;

• The number of guest rooms;

• The number of slot machines;

• The number of table games;

• Net income;

• The number of wins in table games and slot machines;

• The number of employees.

Applicants need to provide a filled-out business disclosure form and must adhere to the stipulations outlined in the Act and the New Jersey Administrative Code.

Tax Obligations for License Holders

Operators holding licenses for online gambling activities must remit an annual gambling tax, which is set at 15% of their gross revenue. For those involved in online sports betting, the tax rate is slightly lower at 13%. Furthermore, license holders are also subject to an alternative investment tax of 5%. Additionally, a payment of 2.5% is required for the Atlantic City Casino Reinvestment Fund.

Licensees are required to pay a daily parking fee of $3 for each parking space utilized by guests at the gambling venue.