The long-awaited legalization of wagering on sporting events finally took place in the state of New Jersey in June of 2018. Bets on sporting events can now be placed on a total of eight different websites and mobile apps in the state of New Jersey. Sportsbooks make use of the services provided by affiliates in order to maximize revenue through the promotion of sports gambling (i.e., entities and individuals involved in promoting, marketing, and directing business to online sports gambling websites).
Since the beginning of online gaming in November 2013, the New Jersey Division of Gaming Enforcement (abbreviated “DGE”) has been in charge of regulating the various operators and affiliates of online gambling within the state. This regulation now applies to betting on sports that take place within the state but via the internet. David Rebuck is currently serving as the Commissioner of the DGE. In order to stay in good standing with the DGE, licensed sportsbooks are required to only work with other licensed businesses, and licensed affiliates are restricted to promoting only those sportsbooks that are authorized by the state.
Guidelines for Advertising and Promotion Regarding Sports Betting
According to the Director Advisory Bulletin that was published by the DGE in June 2015, “Illegal internet gaming sites that accept wagers from New Jersey players pose a significant threat to the regulation of lawful gaming.” (entitled “The Bulletin for 2015”) As a consequence of this, affiliates of online gaming operators who market illegal gaming websites pose a threat to the regulation of legal gaming in New Jersey that is comparable to, if not even larger than, the threat posed by illegal gaming websites themselves.
This is because affiliates market illegal gaming websites in the same manner as legitimate gaming websites. In point of fact, the DGE started sending “cease and desist” letters to affiliates in the year 2014 in an effort to persuade them to refrain from promoting illegal online gaming businesses. “This may taint legitimate sites by connecting them with the illicit ones, or conversely, it may give the idea that these illegal sites are linked with permitted sites,” said a spokeswoman for the Department of Gambling Enforcement (DGE). When an affiliate advertises both legal and illegal forms of gambling, “this may taint legitimate sites by connecting them with the illicit ones.” “By connecting lawful sites with respectable sites, this could potentially contaminate respectable sites.”
The Sports Gambling Marketing Bulletin has issued a warning about the potential dangers of gambling on sports
Affiliates, including their owners, officials, and directors, were issued a warning by the DGE in its 2015 Bulletin that they would not be awarded a state license if it was discovered that they were marketing illegal gaming websites. This warning was included in the DGE’s bulletin. The bulletin did indeed contain this cautionary notice. Affiliates who are already engaged in marketing for sports betting are in a position to directly benefit from the recommendations and warnings that are contained in the 2015 Bulletin.
In light of these developments, FanDuel Inc. sent an email to its partners and affiliates urging them not to participate in the marketing of sports gambling for illegal (and, for the most part, offshore) sports betting sites. In the email, FanDuel Inc. The email was dispatched as a reaction to the most recent occurrences. In point of fact, failing to comply with the regulations that govern sports betting in the state of New Jersey can result in the imposition of severe penalties. These regulations can be found in the New Jersey Sports Wagering Regulations.
These can take the form of monetary fines, the loss of an operating license to conduct business in the state of New Jersey, and the possibility of being deemed ineligible for future licensure in the markets of other states. In addition, the loss of an operating license to conduct business in the state of New Jersey can prevent a company from conducting business in the state. In point of fact, DGE Commissioner Rebuck has issued a warning to operators and/or affiliates that they “will not get licensed in NJ” if they engage in business with illegal sports gambling companies. This warning was issued in reference to the fact that operators and/or affiliates “will not get licensed in NJ” Should you choose to accept my challenge, I will challenge you to a fight for a license in any state of your choosing.
Observance of the Regulations Regarding the Wagering of Athletic Events
In order to comply with the regulations of the state of New Jersey, if you manage a sports betting marketing organization in the state, you are required to only collaborate with individuals or businesses that hold authorized gaming licenses. This is to ensure that you remain in compliance with the regulations of the state. If you want to maximize your potential for financial gain in this area, it is in your best interest to comply with the rules and regulations that the state of New Jersey has established in it. In point of fact, New Jersey surpassed Nevada in terms of total sports wagering in 2020 by a margin that was greater than $1.5 billion. As a result, New Jersey established itself as the state with the highest annual handle total in terms of sports betting.
The information that has been provided here is not meant to be taken as legal advice, nor is it meant to serve as a replacement for going to an attorney to receive such advice; rather, it has been provided primarily for educational purposes and is not intended to be taken as a substitute for going to an attorney to receive such advice. Because every situation is unique, you should not take any action or rely on any of the information contained in this article until you have first discussed the matter with an experienced legal professional who is familiar with the subject matter.
