According to the Unlawful Internet Gambling Enforcement Act (UIGEA), passed in 2006, U.S. banks cannot accept online payment for gambling activities. However, the law exempted online gambling within the borders of a state that legalizes such activities.
In 2013, New Jersey passed bill A2578 allowing online gambling with restrictions.
1. Only brick-and-mortar casinos can offer online gambling
Atlantic City is the second largest gambling site in the United States. Visitors can gamble within the state’s many casinos. The passage of A2578 made it legal for these casinos to offer online gambling as long as the casino followed the regulations. The state requires casinos to pay annual fees and obtain licensing to ensure the legality of the activities.
2. Only certain people can participate in online gambling
Since New Jersey allows online gambling while most other states do not, players must be within the state’s boundaries to play. The websites require players to enable geolocating software to track their location to ensure they are not playing outside the borders. Players must also verify their age to prevent those under 21 from gambling.
3. Many illegal online gambling sites still exist in New Jersey
Internet casinos operating separately from the brick and mortar casinos of Atlantic City are unlawful in New Jersey. While state regulations prohibit these businesses from collecting money from players, the rise of cryptocurrency makes it challenging to regulate illegal online gambling.
While the internet may make it easier to offer online gambling opportunities, ensure your online business is legal by conforming to state regulations.