new jerseyThe New Jersey Division of Gaming Enforcement (NJDGE) has fined one of the online operators operating in its jurisdiction for violating geo-location norms in force in the state.

GameAccount Network (GAN) was fined $25,000 by NJDGE recently due to the fact that a few bets were placed outside state borders via an Android mobile application. The bets were less than $350 and took place on the Betfair Casino app, which was using GAN’s software.

The software used was not the approved version, allowing the players to bypass geo-location restrictions.

The civil action order from DGE Director David Rebuck stated that the players had been authorized by the operator’s system accidently.

The NJDGE has strict provisions in place that bar online gaming operators to accept bets from players located outside the state. New Jersey, Nevada and Delaware are the only three states in United States that allow online gaming. New Jersey is the largest amongst them with over 18 gambling operators active in the market.

New Jersey’s gaming regulators require rigorous measures to be deployed by licensed online gaming operators to ensure that the geo-location restrictions are met. All software updates and changes are typically tested by the gaming regulator before it is released by the operators to the players. GAN has fixed the loopholes in its mobile systems after the recent incident, ensuring that there are no further re-occurrences. The NJDGE has tested and approved the updated software for release.

Industry observers say that the fact that the DGE was able to identify and isolate incidents of geo-location violations bolsters the position that online gambling can be monitored effectively. Although this is not the first time that the NJDGE has levied penalties on online gaming operators, it is the first incident involving issues with geolocation and release of untested software.

Most recently, bwin.party was fined around $10,000 for failing to comply with a divestiture agreement that was an essential condition for being licensed to operate in New Jersey. There have been other notable incidents of the regulator levying significant fines. Caesars Interactive and Resorts Casino Hotel were penalized for allowing direct advertising to gamblers in the state who had opted to be on the self-exclusion list. They were fine $25,000 and $7,200 respectively.

The Borgata Hotel Casino & Spa and Tropicana Casino were fined for accepting bets from gamblers who were underage. Borgata paid $5,000 as fine while Tropicana paid $2,200. According to current laws, only those above 21 years can participate in gambling.

Categories: Casino News

Posted on: 29th June 2016 by: Gary Beachley