New Jersey was one of the first states to establish legal internet gaming in the U.S. With the legalization of iGaming in 2013, a competitive online gaming market was envisioned. One that would protect the public interest while generating new revenue streams for the government. Today, New Jersey’s iGaming industry is breaking revenue records, and the Garden State has firmly established itself as a leader in iGaming regulation. However, how did the state reach this position? Let’s look at the journey that transformed New Jersey into a model for other states.
The Genesis of iGaming in New Jersey
New Jersey’s journey into legalized online gambling began in early 2013. On February 26 that year, then-Governor Chris Christie signed legislation permitting online gaming. The market went live just nine months later, with a synchronized launch ensuring no single brand had an unfair advantage.
The strategic rollout positioned New Jersey as a pioneer in the U.S. online gambling landscape, but upon its launch, the state faced challenges.
Ensuring online gamblers were physically located within New Jersey’s borders was the first challenge. During the initial test period, geolocation software erroneously blocked many users trying to play Borgata online casino games or games from other legal online casinos. This was due to the technology’s reliance on IP addresses and Wi-Fi triangulation, sometimes providing inaccurate location data. To combat this, the Division of Gaming Enforcement (DGE) worked closely with technology providers to enhance the accuracy of geolocation tools, eventually achieving a 98% success rate in accurately determining user locations.
Another critical obstacle was the reluctance of banks and credit card companies to process online gambling transactions. Despite the legalization at the state level, many financial institutions were wary due to the federal Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, which had previously restricted such transactions. As a result, many players experienced declined transactions when attempting to fund their online gambling accounts. To address this, the DGE collaborated with the New Jersey Department of Banking and Insurance and the U.S. Office of the Comptroller of the Currency to develop a new credit card code for legal online gambling transactions. This initiative improved acceptance rates, with approximately 73% of Visa and 44% of Mastercard transactions approved by early 2015.
By tackling these initial hurdles head-on, New Jersey established a robust and secure online gambling environment and became the model for other states in iGaming regulation.
The Role of the Division of Gaming Enforcement (DGE)
Under the leadership of David Rebuck, who served as director from 2011 until his retirement in 2024, the Division of Gaming Enforcement (DGE) played a central role in the success of New Jersey’s iGaming sector. Rebuck oversaw the launch of internet gambling in 2013 and the introduction of sports betting in 2018, driving significant modernization within the DGE during his tenure.
New Jersey Attorney General Matthew Platkin praised Rebuck for his contributions to the state’s gaming industry:
“Throughout his career, David has exemplified professionalism, innovation, and leadership as the gaming industry transformed, first with the legalization of Internet gaming in 2013 and then with the new era of sports gaming in 2018,” Platkin said.
“His extensive gaming and casino industry knowledge has made New Jersey a recognized regulatory leader and pacesetter in the US.”
Record-Breaking Revenues and Market Growth
New Jersey’s iGaming sector has experienced rapid growth. In 2024, the state reported total gaming revenues of $6.3 billion, a 9% increase from the previous year. Internet gaming alone accounted for $2.39 billion, marking a 24.1% year-over-year increase.
This means the surge in gaming revenue can be attributed to the growing popularity of online gaming platforms. In October 2024, for the first time since the 2020 shutdown of land-based casinos, iGaming revenue surpassed in-person casino revenue. This notable milestone highlights the steady rise of online gaming year after year in New Jersey.
Emphasis on Responsible Gaming
With growth comes responsibility. Since the legalization of iGaming, New Jersey has prioritized responsible gaming initiatives to address the potential risks associated with increased gambling accessibility. The state requires staff members to be trained in recognizing signs of problematic behavior among patrons, fostering a culture of responsibility within the industry.
New Jersey’s responsible gaming policy is both innovative and data-driven. The Division of Gaming Enforcement (DGE) mandates that online gaming operators monitor player behavior for indicators of problem gambling. These indicators include increased gambling time, repeated self-imposed cool-off periods, and frequent visits to self-exclusion pages without completing the process. When such behaviors are identified, operators must employ a tiered intervention strategy, ranging from automated messages to direct outreach by responsible gaming professionals.
To make self-exclusion more accessible, New Jersey launched a 24/7 online application portal where individuals can voluntarily add themselves to the self-exclusion list. Players can select a ban duration starting at a minimum of one year, and they may only request removal after the specified period has expired. Additionally, all licensed online casinos must offer self-exclusion tools on their platforms.
In a further commitment to responsible gaming, Governor Phil Murphy signed Executive Order 360 in June 2024 to establish a task force to address rising rates of gambling addiction. The task force comprises seven government representatives or their designees and provides policy recommendations to the Governor’s Office and the Attorney General. Its primary objective is to ensure that individuals affected by problem gambling have access to the help they need and that reforms are introduced to strengthen New Jersey’s responsible gaming framework.
New Jersey Set the Gold Standard for iGaming in the U.S.
New Jersey’s journey to becoming a leader in iGaming regulation is a testament to strategic planning, robust oversight, and a commitment to innovation. The state has set a benchmark for others to emulate by addressing challenges head-on and prioritizing growth and responsibility. As the digital gambling landscape evolves, New Jersey’s model offers valuable insights into effective regulation and sustainable industry development.
