Online Gaming Administrator of New Jersey Urges Digital Gambling Platforms to Depart from Australia
In a directive sent to New Jersey's online gambling licensees, David Rebuck, Director of the New Jersey Division of Gaming Enforcement (DGE), made it crystal clear – cease all operations in Australia immediately or face the consequences.
No More Down Under Business for You!
Failing to heed Rebuck's warning could mean trouble for these companies, with the DGE potentially slapping them with regulatory actions, including finding them unsuitable for licensure in New Jersey.
Why the Sudden Change of Tune?
The foundation for this hardline stance was laid back in April 2016 when Rebuck issued a Director's Advisory Bulletin, clarifying the DGE's stance on New Jersey licensees and applicants operating in "grey market" jurisdictions, that is, places where laws were vague or not enforced.
If a grey market started to enforce its gaming regulations, it would be reclassified as a black market, effectively closing the door for New Jersey online gambling operators and hopefuls.
Australia's U-turn
Until mid-September, Australia represented a grey market, but the Interactive Gambling Amendment Bill 2016 - passed a month earlier - changed the game. IGA required online gaming operators to secure licenses before offering their services, a sensible move, albeit one that left some operators out in the cold, especially those offering poker and casino games, as only online sports betting was legalized.
Consequently, Australia's shift left it in the DGE's proverbial black book for poker and casino operators.
Keeping You in the Loop, Down Under Mate!
Following the regulatory changes, Australian Communications and Media Authority (ACMA) Acting Chairman Richard Bean penned a letter to Rebuck, filling him in on the new rules and Australia's plans to enforce them. Bean then referenced the April 2016 Bulletin, stating, "...we would appreciate your assistance in informing online gaming operators licensed in New Jersey about the above changes so they can take the necessary steps to ensure they are not at risk of contravening, or facilitating a contravention of, Australian law."
With Bean's request, Rebuck swung into action, penning the aforementioned stern letter to New Jersey operators. In it, he informed them that they must comply with Australia's new laws and stop offering all prohibited services to customers in Australia. Failing to do so could lead to the DGE taking regulatory action against these companies.
Give Us the Lowdown, Aussie Blockers!
Rebuck put the affected companies on a 15-day deadline, effective September 29th, to outline the steps they are taking to block Australians from accessing their sites, when these blocks will be put in place, and, if the operators are still letting Aussies on their sites, they must explain why.
It's Not Just Players, Operators
Business-to-consumer (B2C) and business-to-business (B2B) operators are equally bound by this requirement. B2B operators, however, must ensure that their B2C partners are also in compliance.
What about New Jersey's Regulations?
New Jersey's gaming regulations, like those suggested by the Responsible Gaming Task Force, mainly focus on promoting responsible gaming within the state. These measures include requiring addiction warnings in gambling advertising and enhancing access to mental health treatment[1][5]. However, these regulations don't directly impact operations in Australia.
On the flip side, the Interactive Gambling Amendment Bill 2016 in Australia mandates stringent standards, requiring operators to comply with specific regulations to safeguard consumers[3]. New Jersey licensees, however, are not under obligation to adhere to these regulations as they pertain to Australian consumers.
[1]: Centre for Campus Mental Health - https://www.ccmhtest.org/
[3]: Australian Communications and Media Authority, Interactive Gambling Regulation, https://www.acma.gov.au/consumers/online-safety/online-gambling
[5]: New Jersey Department of Health - Division of Mental Health and Addiction Services, https://www.nj.gov/health/dmahs/
- In light of Australia's changes in online gambling regulations, New Jersey online gambling operators must reconsider their operations Down Under to avoid potential regulatory actions from both the Australian Communications and Media Authority and the New Jersey Division of Gaming Enforcement.
- As a result of the Interactive Gambling Amendment Bill 2016, Australia has moved from a grey market to a black market, requiring all online gaming operators to secure licenses and comply with strict regulations, which could lead to complications for New Jersey companies with operations in the region.
- The changes in Australia's gambling landscape create a necessity for New Jersey's online gambling operators to remain updated on the latest news and technological advancements in the field as they navigate the complexities of adhering to new regulations in multiple jurisdictions.
