Gambling Laws of New Jersey Legal State of Gambling

History and Timeline for New Jersey Online Gambling

This timeline outlines the sequence of events that culminated in the legalization of gambling in the state of New Jersey.

Gambling had a significant presence in New Jersey dating back to the 19th century until its prohibition in 1844. Following this prohibition, only lotteries persisted, serving as a means to fund the military efforts during the French and Indian War. However, the landscape shifted with the 1897 referendum, which led to a constitutional amendment in New Jersey, resulting in the complete prohibition of gambling within the state.

• Governor Brendan T. Byrne officially enacts the Casino Control Act, signing it into law against the backdrop of Atlantic City's Boardwalk Hall on June 2, 1977.

  1894-1939: Gambling was theoretically outlawed in New Jersey; sporadic enforcement with unclear restrictions on social gambling. Despite this, bookmaking, numbers games, and slot machines were prevalent. Non-profit organizations openly conducted bingos, and Freehold Raceway operated continuously. Racetrack gambling was re-legalized in 1939.

• 1953: Voters approved a referendum permitting non-profit organizations to hold bingo and raffles with municipal approval and state regulation.
• 1959: Amusement games were re-legalized following a court decision declaring them illegal gambling in 1957.
• 1969: Referendum results showed 81.5% support for creating the New Jersey Lottery. In 1975, the Pick-It (later named Pick-3) became the first legal lottery game in the U.S., allowing buyers to select their own numbers.
• 1974-1978: Initially, voters rejected statewide casino gambling in 1974. However, two years later, a new referendum legalized casinos exclusively in Atlantic City. Resorts Atlantic City became the first casino to open in 1978, marking a new era.
• 2006: A budgetary deadlock between Governor Jon Corzine and the state legislature led to a lengthy state government shutdown, including Atlantic City's casinos and racetracks, due to legal regulations requiring government oversight. This closure cost the state an estimated $1.3 million in casino revenues and impacted state taxes. Despite subsequent efforts, Atlantic City's gaming revenue post-2006 has yet to reach its pre-shutdown peak.

Legalization of Sports Betting in New Jersey

• January 2012: Governor Chris Christie signs legislation allowing sports betting in New Jersey after voters approve it by a 2-to-1 margin in a November 2011 referendum. The law permits casinos and racetracks to offer sports gambling on professional and college sports, except for college events in New Jersey or out-of-state games involving New Jersey college teams.
• Subsequent Regulations: The New Jersey Division of Gaming Enforcement issues regulations for sports betting following the enactment of the law.
• Legal Challenges: Various sports leagues filed a federal lawsuit against New Jersey to prevent sports betting, citing the Professional and Amateur Sports Protection Act of 1992 (PASPA), which prohibited sports betting in most states. Courts ruled against New Jersey's efforts based on the Commerce Clause of the U.S. Constitution.
• 2014: New Jersey challenges PASPA, aiming to revoke Nevada's federal statutory monopoly on legal sports betting.
• Supreme Court Case: The U.S. Supreme Court agrees to hear Christie v. National Collegiate Athletic Association. In May 2018, the Court issued its decision in Murphy v. National Collegiate Athletic Association, overturning PASPA as unconstitutional. This ruling paved the way for New Jersey to implement legalized sports betting.
• Legalization: On June 11, 2018, Governor Phil Murphy signed Assembly Bill 4111, officially legalizing sports betting at casinos and racetracks within New Jersey. The law also allows these establishments to seek approval for online and mobile sports betting.
• Implementation: The first online sports bet was placed in August 2018, marking the commencement of legalized sports betting in New Jersey.
• Present Status: As of 2023, 23 legal online sportsbooks are operating in New Jersey, licensed by the New Jersey Division of Gaming Enforcement. These include prominent platforms such as BetMGM, DraftKings, FanDuel, and others, with continued growth and changes in the online sports betting landscape within the state.

Legalization of Online Gambling in New Jersey

• January 2011: The New Jersey Legislature passes a bill sponsored by Raymond Lesniak to allow online gambling for residents over 21. However, Governor Chris Christie vetoed the legislation due to concerns about potential widespread gambling hubs and the classification of bets placed anywhere in New Jersey as Atlantic City bets.
• December 2011: The U.S. Justice Department's legal opinion indicates that the Federal Wire Act only prohibits online sports betting, not online casino games. Discussions arise regarding the location where online bets are deemed to occur under state and federal interpretations.
• February 26, 2013: A revised bill permitting internet gambling overwhelmingly passes the New Jersey Legislature and is signed into law by Governor Chris Christie. The law legalizes online casino gambling for a ten-year trial period, restricted to Atlantic City's eleven casinos. It introduces a 15% tax on online gambling revenue and mandates that gamblers be at least 21, playing from within New Jersey.
• November 21, 2013: Online casinos commence operations in New Jersey, offering limited game options initially. By 2017, twelve separate online casino brands provided a wide array of games, including many adapted from traditional casinos.
• November 26, 2013: The New Jersey Division of Gaming Enforcement (NJDGE) authorizes the launch of online poker rooms following a “soft play” period. Partypoker, Borgata, and WSOP.com are the first online poker sites to launch, gaining popularity for offering real-money poker from players' homes.
• June 2017: Reports surface that New Jersey's online gambling industry surpasses $100 million in tax revenue. Online casino revenues outpace those of some brick-and-mortar casinos in the state.
• October 2017: New Jersey, Delaware, and Nevada entered into the Multi-State Internet Gaming Agreement (MSIGA), allowing cross-state competition in online poker and some casino gaming.
• May 1, 2018: WSOP establishes the first multi-state online poker network in the U.S., uniting New Jersey and Nevada platforms, along with three Delaware racinos, into one player pool.
• January 2023: Michigan joins the MSIGA agreement, enabling PokerStars to connect its Michigan and New Jersey online poker platforms, resulting in increased revenues and player engagement in New Jersey.