28% of New Jersey Residents Bet Illegally. Report Calls for RG Overhaul

A Sweeping Call for Responsible Gaming Reform

Addressing casinos, sports betting, lotteries, bingo, parimutuel wagering, and fantasy sports, the report emphasizes standardization, unlicensed operators, prevention, education, funding, and treatment.

A striking finding: 28% of residents engaged in unregulated gambling, like sweepstakes casinos, in the past 24 months, per the Sofis Report, underscores the urgency.

With $5.4 billion in iGaming and $2.5 billion in sports betting revenue in 2024, the task force aims to protect vulnerable groups, including minors and young men, who face heightened addiction risks.

The report proposes a multi-faceted approach. A centralized RG website would serve as a one-stop resource, while standardized tools like deposit limits, time caps, and a universal self-exclusion list would unify protections across platforms.

A proposed URGE Board, comprising experts and industry leaders, would advise on RG funding, focusing on prevention and treatment. Annual gambling studies would track player demographics, behaviors, and program effectiveness, ensuring data-driven policies.

Standardizing Responsible Gaming Tools

Standardization is a cornerstone here. The report points out inconsistent RG practices across gambling forms, a legacy of separate legislation for casinos, sports betting, and lotteries. It recommends uniform RG tools: deposit limits, spending caps, cooling-off periods, and self-exclusion options, for all online operators.

A universal self-exclusion list, covering all legal gambling, would simplify opt-outs, addressing the current patchwork system. Consistent RG messaging, like mandatory warnings, would extend to fantasy sports, which lack robust safeguards.

Further, the task force suggests exploring a unified 21+ gambling age, as lotteries allow 18-year-olds, creating confusion. Limiting third-party funds for online betting, like credit cards, could curb risky spending, a practice that states like Ohio restricted in 2023.

A centralized RG website, linked by all operators, would offer tools, treatment resources, and agency contacts, boosting accessibility.

Cracking Down on Unlicensed Operators

Unregulated operators, particularly sweepstakes casinos, are a major concern. These platforms, offering slot-style games without licenses, evade RG requirements, age checks, and taxes, fueling a $64 billion U.S. offshore market.

The report notes consumer complaints about withheld winnings, opaque rules, and blocked accounts. A proposed bill, A. 5447, would classify sweepstakes as gambling, granting the DGE enforcement powers.

Sweepstakes casinos exploit legal loopholes, claiming “no purchase necessary” entries avoid gambling definitions, yet many require paid “chips” for prizes, blurring lines with regulated platforms.

Unlike licensed operators, which face audits, these sites lack age verification, exposing minors to gambling mechanics. The report cites 28% of residents using unregulated platforms via VPNs, social media, or proxy apps, risking fraud and data theft.

Education and Prevention for Vulnerable Groups

Prevention and education are critical, especially for youth, who are vulnerable to addiction due to unregulated platforms’ weak age controls. The report calls for RG education in K-12 schools, integrating financial literacy and risky behavior lessons.

Mandatory RG training during account creation, warning labels in casinos, and a statewide campaign, funded by the industry, would raise awareness.

Collaborating with schools and community groups, the task force seeks to promote resources like the 1-800-GAMBLER hotline, which saw a 20% call increase since sports betting’s 2018 launch. Programs for underage gamblers, requiring educational courses, would deter early habits.

Funding and Treatment Challenges

Funding RG initiatives is a priority. The report suggests boosting CCGNJ’s budget, expanding inpatient treatment centers, and partnering with providers for direct services.

All gambling revenue sources, including $1.2 billion in 2024 sports betting taxes, should support RG. Past funding distribution issues, like delayed grants, need addressing.

Licensing changes would allow addiction counselors to treat problem gambling without extra certifications, increasing the 50 certified clinicians statewide.

Treatment access is limited, with only 1,200 served annually versus 5% of bettors needing help. Direct provider partnerships and staff training to spot problem gambling would streamline care. The URGE Board would oversee fund allocation, ensuring prevention, early intervention, and treatment, potentially saving $50 million in social costs.

Event-Based Contracts and Regulatory Gaps

The report also addresses prediction markets, which resemble betting but fall under CFTC oversight. Due to the report, these contracts, tied to political, economic, or entertainment outcomes, bypass state gambling laws.

New Jersey bans election betting due to fraud risks, per N.J.S.A. 19:34-24, but 2024’s $100 million in political contract volume shows demand. The AGA opposes these markets for undermining state regulations.

A 2023 CFTC ruling banned certain contracts, though appeals allowed trading to continue. Markets now cover Grammys, Super Bowl 2025, NCAA championships, and most recently, NBA games, raising concerns about unregulated platforms mimicking licensed sportsbooks.

The task force urges stronger DGE oversight to protect the $2.5 billion legal betting market.