New Jersey has become the first state in the nation to require online gambling operators to use player data and behavioral red flags to identify customers who may be developing a gambling problem, and to intervene when those warning signs appear. The rules, finalized this week, cover everything from sudden spikes in deposits to repeated attempts to cancel withdrawals, and they carry real consequences for operators that ignore them.
According to WRNJ Radio, the requirements have been formally adopted into state regulations, making them legally enforceable rather than simple guidance. Attorney General Jennifer Davenport announced the new regulations Wednesday, according to the Press of Atlantic City, whose reporting, authored by Wayne Parry, forms the backbone of the account of exactly how the system is supposed to work. Governor Mikie Sherrill said, per that reporting, that New Jersey continues to lead in data-driven best practices for internet gaming and online sports wagering.
How the Triggers Work
Under the new system, the state's Division of Gaming Enforcement requires operators to conduct a review whenever a customer meets certain behavioral criteria baked into the rules, the Press of Atlantic City reports. Those triggers reportedly include depositing over $10,000 into a gambling account within 24 hours, an account turnover of $1 million or more within 90 days, and ending two or more gambling sessions in the same week with less than $1 left in the account.
Other flagged behaviors include canceling a withdrawal request three times in 10 days, requesting a second cool-off period less than 45 days after the first, and a 50 percent increase in time logged into an account compared with the previous two weeks. Accessing the state's self-exclusion page without signing up three or more times in a 30-day period can also trigger review, as can concluding two or more sessions in the same week with an increase in the size of bets made, the outlet notes.
Importantly, hitting one of these thresholds does not automatically brand someone a problem gambler. As CDC Gaming reports, a trigger doesn't automatically mean that someone has a gambling problem — it simply obligates the operator to conduct a due-diligence review before deciding how to respond.
Three Phases of Intervention
Customers determined through that review to be at risk must be added to an operator's list of at-risk patrons and subjected to three escalating phases of intervention, the same CDC Gaming report states. Earlier phases can include emailing customers information on responsible-gambling features — time, loss and deposit limits, cool-off periods, self-exclusion requests and account closure procedures — and requiring them to watch a video on problem gambling and responsible betting before they're allowed to keep playing.
By phase three, interventions require live communication, the outlet's report notes, meaning operators must contact customers by phone or video call to discuss their behavior, responsible-gambling practices and available help options. Every operator must also appoint a designated responsible-gaming lead, and companies must provide that person's name and contact information to flagged customers, according to the Press of Atlantic City's account. If a patron can't be reached, operators may suspend the account after three unsuccessful contact attempts until direct contact is made; if the company determines after a phase-three intervention that the customer has a gambling problem, the account may be closed. Operators may also refer customers to medical or law enforcement agencies if they're determined to be a danger to themselves or others.
Why Regulators Acted Now
Davenport said New Jersey is aware that some operators have used aggressive marketing or promotional tactics to target people exhibiting signs of a gambling disorder, according to Casino.org. The Press of Atlantic City reports that the state finalized the new regulation in part because of such reports. Davenport also said the regulations require operators to offer resources, including live support where appropriate, to people struggling with problem gambling, per that same reporting.
The new rules build on previous monitoring requirements New Jersey had already issued, the outlet notes — the state's Division of Gaming Enforcement had earlier launched a Responsible Gaming Initiative using information already collected by online operators about patrons' playing habits, according to the New Jersey Office of the Attorney General. As part of the broader push, the state also released RecoverMe, a free cognitive-behavioral therapy app for people with gambling problems, CDC Gaming reports.
Advocates Welcome the Rules, But Flag a Risk
Luis Del Orbe, executive director of the Council on Compulsive Gambling of New Jersey, said gambling accessibility is excessive and that he supports people getting help, according to the Press of Atlantic City. But Del Orbe also warned that overly aggressive intervention could push gamblers away from regulated, legal platforms and toward an unregulated black market — a tension regulators will have to watch as the rules take effect.
For now, the requirements apply only to online operators, CDC Gaming reports, leaving brick-and-mortar casino floors untouched by the new data-driven system. The rollout comes amid broader scrutiny of gambling-industry marketing practices nationally; Casino.org separately reported that a FanDuel VIP who was exhibiting problem betting behavior had received a personalized video message from his favorite MLB player, Bryce Harper, an example cited in discussions of how operators court high-value bettors even as some show signs of distress.
