New Jersey makes gambling addiction safeguards mandatory

Online betting companies must identify at-risk customers, provide support, and follow a three-stage intervention process or face potential penalties.

New Jersey has become the first state to require online gambling operators to identify customers who show signs of possible gambling addiction and intervene with a set of measures designed to help them.

The regulations require operators to monitor their customers according to specific, data-driven criteria that include mandatory gambling activity thresholds and behavioral triggers, state Attorney General Jennifer Davenport said on Tuesday.

If operators find evidence of problem gambling, they must provide the player with helpful resources, add the person to the operator’s list of at-risk patrons, and follow a three-step intervention process, Davenport said.

“We’re making it mandatory for operators to track their players and to act when appropriate and necessary,” Davenport said at a news conference announcing the initiative. “We need these robust protections because we’re seeing an explosion in retail and online casino games, as well as sports betting.”

The regulations also require every operator to appoint a responsible gaming lead to oversee the efforts, Davenport said.

Online gambling operations already have staff dedicated to responsible gaming and follow similar standards under the state’s earlier best practices. But now there is a uniform, enforceable standard for when reviews and intervention become necessary.

“These initiatives reflect [the state Division of Gaming Enforcement’s] commitment to responsible gaming through practical, proven methods,” said Mary Jo Flaherty, the agency’s interim director. “Our regulations identify and respond to gambling-related harm. When signs of problem gaming arise, operators must act to ensure early intervention and support, tiered to individual need.”

Jamie McKelvey, the Division of Gaming Enforcement’s responsible gaming coordinator, noted that a triggered review doesn’t automatically mean a person has a gambling problem. But it requires the operator to evaluate the customer’s gambling activity and behavioral indicators to determine whether the person should be deemed at risk, she said.

“The goal is to identify concerning behavior and assess the individual circumstances before determining what intervention, if any, is appropriate,” she said.

The interventions gradually escalate, she said, and at the highest level require the responsible gaming lead to speak directly with the patron. If the lead determines the person remains at risk, the customer’s account will be closed.

“Because we have that human interaction, we’re hoping it will be more personalized,” she said. “Any operator found to not be complying with these mandatory requirements, both the triggers as well as the phased intervention, may be subject to regulatory discipline,” McKelvey said.

Operators that violate the regulations could face civil penalties, be required to forfeit money or surrender profits obtained through violations. The regulations also ban operators from sending marketing or promotional materials to patrons who reach the second or third intervention level, McKelvey said.

The attorney general also warned sports betting companies against targeting customers who show clear signs of gambling addiction, saying her office “stands ready to take action against anyone who violates our gaming regulations and tries taking advantage of New Jerseyans and those who gamble here.”

The Division of Gaming Enforcement will oversee compliance, and operators will have to show the division that they’re conducting the required reviews, documenting their decisions and intervening when necessary.

The regulations do not apply to brick-and-mortar casinos, although McKelvey said the state is considering how to apply them to casinos in the future.

Officials also cited the state’s legal battle with prediction market Kalshi as part of broader efforts to regulate gambling. New Jersey has asked the U.S. Supreme Court to hear its case against Kalshi, arguing that prediction markets must be subject to state gambling laws.

A bipartisan coalition of 39 states and the District of Columbia, 146 Indian tribes and tribal organizations, the NFL and leading industry organizations have filed briefs supporting New Jersey’s request, according to the attorney general’s office.

Davenport also announced the availability of RecoverMe, an app designed to help people manage their gambling activities.

The app uses mindfulness and cognitive behavioral therapy techniques to help people assess their gambling behavior, track their gambling habits, participate in therapy sessions, and find crisis support services. It is available free to residents of New Jersey.

“RecoverMe, which is available to anyone located within New Jersey, addresses behavior by providing practical, self-guided tools to help patrons manage impulses and make healthy decisions,” the attorney general said.

The app is the second free service the Division of Gaming Enforcement has offered to people experiencing gambling problems. Last year, the agency began providing access to GamFin, which offers confidential financial counseling to help gamblers and their families address and prevent gambling-related financial harm.