In New Jersey, sweepstakes and proxy bets have been banned: the market is waiting for fines and the departure of operators
New Jersey became the first state in the United States to officially ban pari-mutuel casinos. Governor Phil Murphy signed bill A-5447, and it went into effect on August 15.
The law also severely restricted the use of proxy servers for betting. Now any bets through intermediaries in the amount of $1000 or more are equated to a crime. The use of other people's accounts for the game, as well as insider betting, was also banned. In addition, the authorities have introduced rules against match-fixing and gambling-related corruption schemes.
The penalties are impressive, with fines reaching $100,000 for the first offense and up to $250,000 for repeat offenses. In addition, regulators received the authority to seek court decisions against illegal operators in order to block their work in the state.
These measures have already led to real consequences: back in July, VGW left the New Jersey market, closing access to Chumba Casino and Luckyland Casino. The operator's departure has shown that the new rules can directly change the online gambling landscape.
The ban on sweepstakes in New Jersey reflects a broader trend, with federal and state governments increasingly regulating alternative online casino models. It seems that similar restrictions may appear in other regions of the United States in the coming years.
Mark Patterson is the news writer at CasinosInCanada who covers the latest developments in the iGaming industry, including casino launches, regulations, and market updates.
Betting through a proxy is generally a gray market, it is logical that it was closed.
I played Luckyland, it's a pity that they closed it. But, to be honest, it was still done crookedly there.
I wonder who will be next now?
As always, the players were punished, and large offices will find workarounds.
It was high time.