A few small out-of-state bets resulted in a big fine for one of New Jersey's regulated online casino providers.
New Jersey, Delaware, and Nevada are the three current states permitted to offer regulated online poker, with the first two also licensing and regulating gaming operators to offer casino games. New Jersey is by far the largest of the three markets and is regulated by the state's gaming authority, the New Jersey Division of Gaming Enforcement (NJDGE).
According to Poker Industry Pro ($), the gaming authority recently fined GameAccount Network (GAN) a civil penalty of $25,000 from bets of less than $350 which took place on Betfair Casino, and online operator that uses the software.
The bets were placed outside the borders of the Garden State by six players on unapproved software for Android mobile devices that was activated unintentionally. The NJDGE's regulations have strict rules prohibiting out-of-state wagering and require all licensed online providers to have strict geo-location measures to prevent this type of activity from taking place. Additionally, all software updates require rigorous testing and approval by the NJDGE prior to being rolled out to customers.
It is reported that since the incident, GAN has completed the steps necessary to get approval from the NJDGE.
This isn't the first time that fines have been levied by the NJDGE, however, it could be the first for geo-location issues and rolling out untested software. In October 2015, bwin.party was fined $10,000 for noncompliance of the terms of a divestiture agreement that was a condition of its licensing in 2013.
Also fined since regulated online gambling has been launched were Caesars Interactive ($25,000) and Resorts Casino Hotel ($7,200) for direct advertising to residents on the self-exclusion list. Borgata Hotel Casino & Spa ($5,000) and the Tropicana Casino ($2,200) were also previously fined for accepting bets from underage gamblers.
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