New Jersey Considers Bill to Claim Funds from Inactive Accounts

Can New Jersey Seize Funds from Inactive Accounts?

The proposed legislation aims to improve accountability and transparency regarding funds left in dormant online gambling accounts.

Under the bill, unclaimed funds from inactive accounts could be transferred to New Jersey’s Unclaimed Property Fund after a designated period.

The bill would require iGaming operators to make multiple attempts to contact consumers whose accounts are classified as inactive or self-excluded. Customers would be encouraged to withdraw their remaining funds through outreach via mail, email, and phone.

If users fail to respond or cannot be contacted, unclaimed funds would be transferred to the state’s unclaimed property program, but only after three years of account inactivity.

This initiative is designed to enhance accountability in the growing online gambling sector while ensuring that account holders have ample opportunity to recover forgotten funds.

Bipartisan Support

The bill has gained bipartisan support among New Jersey lawmakers. It is sponsored by Assemblymen Joe Danielsen and Robert Auth, with additional backing from Assemblymen Sean Kean and John DiMaio.

The legislation would enable the state to claim funds from inactive online gambling accounts if rightful owners fail to claim them.

New Jersey’s online gambling market is substantial, with nearly $500 million in handle reported in October 2024. While most funds are either returned to players or retained by operators in the case of losses, some accounts hold unused balances that remain untouched for extended periods.

If passed, the new law would grant the state access to funds in dormant accounts where players have not responded to operators’ contact attempts. This measure addresses a previously underregulated area, ensuring that unclaimed money does not remain indefinitely in limbo.