With the move, New Jersey follows several other states, such as Colorado, Louisiana, and Michigan, that have banned similar partnerships.

The new law comes into effect immediately.

Law Aims to Protect Students

The new ban applies to all public higher-education institutions in New Jersey. This includes community colleges, state universities (such as Rutgers), and their athletic and booster organizations.

It took over a year for A4113 to pass after its introduction in April 2024. It defines “sports wagering partnership” as any agreement (directly or through intermediaries) that gives sportsbooks access to advertising in colleges. Such examples include stadiums, digital or broadcast content, and any other channels owned by public universities.

An amendment from September 2024 does allow partnerships solely for academic or experiential learning purposes. Student internships, or partnerships facilitating coursework and research, are permitted.

Senator Joe Cryan, who sponsored the Senate companion bill, S2155, highlighted that the surge in gambling ads and partnerships, particularly those targeting colleges, has contributed to an increase in gambling among students.

Cryan, the chair of the Senate Higher Education Committee, added that the new law will protect students:

“Young people are especially vulnerable to compulsive gambling and can have a difficult time breaking the habit once it becomes ingrained. This will help protect them from the negative influences of advertisements that promote the practice. Our college campuses should be places for learning, not underage gambling.”

Senator McKeon echoed that sentiment. He stressed that college campuses “should be sanctuaries for learning… not inundated with messages that entice them into gambling habits that can put them into debt.”

NJ Aims to Ban College Player Prop Bets as Well

Prohibiting sportsbook partnerships is one part of a larger effort led by New Jersey lawmakers to safeguard young people from the influence of betting.

Another measure under consideration is banning all prop bets on college sports. Last month, the proposal, introduced by Sen. Kristin M. Corrado in April, passed unanimously with a 5-0 vote in the Senate’s State Government, Wagering, Tourism and Historic Preservation Committee.

The bill, S3080, would prohibit all sportsbooks in New Jersey from accepting wagers on prop bets involving any “collegiate sport or athletic event.” If passed, New Jersey would join states like New York and Massachusetts that have banned such bets.

Lawmakers Target Gambling Advertising

Alongside these efforts, legislators are taking a broader approach to regulating and tightening gambling advertising.

One proposal, co-sponsored by Assembly members Calabrese and Hall and Senators McKeon and Burgess, targets ads placed in or near schools and colleges. It also prohibits marketing that predominantly appeals to individuals under the age of 21.

The bills also require the Division of Gaming Enforcement to conduct a 12-month study analyzing how advertising language and presentation influence bettor behavior, especially among young people.

Meanwhile, Sen. Cryan has introduced or supported multiple bills aimed at responsible gambling. One such proposal, S2156, seeks to regulate online gambling advertising more strictly.

It would require the Division of Gaming Enforcement to ensure ads are not deceptive or fraudulent. The regulator would also ensure that they do not target individuals who are underage or are self-excluded. However, the bill has not made any progress since its introduction.

Other efforts by Cryan include a 2023 companion bill to an Assembly proposal that would’ve required colleges engaged in sports wagering partnerships to establish a gambling education program.

The post New Jersey Sportsbooks Can No Longer Partner with Colleges and Universities appeared first on CasinoBeats.

New Jersey could become the fifth state to ban the platforms if Gov. Phil Murphy signs a recently passed bill into law. Meanwhile, a regulatory crackdown in Arizona and a dozen lawsuits in Alabama could force operators out of the two states.

Furthermore, a bill seeking to ban sweepstakes in California, the nation’s largest state, will have its first hearing next week.

NJ Could be The Fifth State to Ban The Sweepstakes Casinos

On Monday, June 30, the New Jersey Assembly voted 69-10-1 to ban sweepstakes casinos. A few hours later, the Senate passed A5447 by a similar margin, 34-5.

The bill defines illegal gambling as any game in which players pay for entries to win prizes, including online sweepstakes casinos. Exceptions for traditional sweepstakes apply, such as free contests and those with specific entrance and odds rules.

The bill was introduced in March and saw little movement until June. However, factors like an endorsement by the New Jersey Responsible Gaming Task Force and bans in other states have seen the proposal quickly move through the legislature this past month.

If Gov. Murphy signs A5447 into law, New Jersey will join Montana, Connecticut, New York, and Nevada in banning the platforms in the past two months.

Unlike the rest, Nevada doesn’t explicitly ban sweepstakes platforms. The recently passed bill, however, gives state gambling regulators more power to target and prosecute unlicensed out-of-state operators.

The Louisiana legislature also passed a ban bill. However, Gov. Jeff Landry vetoed it, stating it was unnecessary. Since then, the state has sent a cease-and-desist order to 40 offshore and sweepstakes operators, with approximately 20 having already left the state.

Meanwhile, ban bills in Maryland and Mississippi passed one chamber but failed in the other. In both states’ cases, the Senate advanced a ban, but it failed in the House.

Elsewhere, ban bills remain active in Ohio and California. The Ohio proposal has not made any progress, but the legislative session doesn’t end until the end of the year. Then, it carries on to 2026.

Meanwhile, the proposed legislation in California will have its first legislative hearing on July 8.

Arizona is Joining the Regulatory Crackdown

While some states have chosen a legislative path to pursue sweepstakes casinos, others have taken a regulatory approach through cease-and-desist orders.

Michigan successfully implemented the tactic in early 2024, and as a result, no notable sweepstakes casinos permit player registrations in the state. As mentioned, Louisiana’s recent crackdown has led to a mass exodus, and similar actions by the Delaware Division of Gaming Enforcement and the Maryland Lottery and Gaming Control Agency have proven successful.

On the same day that Louisiana issued the regulatory orders, the Mississippi Gaming Commission followed suit. However, the scope was much smaller and only a handful of operators have left.

Arizona is also ramping up its efforts. While it has targeted mostly offshore casinos in the past, in recent months, it has sent cease-and-desist letters to a few sweepstakes platforms.

In April, it ordered Modo.us and several offshore operators to cease operations, which Modo has complied with. Last week, the Arizona Department of Gaming sent another wave of similar orders, including to Stake.us and High 5 Casino.

The two have not yet complied, but given that the regulatory tactic is paying off in other states, Arizona could become the latest jurisdiction to see a growing number of sweepstakes casinos exit.

13 Active Lawsuits Against Sweepstakes Casinos in Alabama

Sweepstakes casinos face a different threat in Alabama, one of the strictest anti-gambling states. While others target the platforms with legislative bans or regulatory cease-and-desist letters, Alabama has 13 active lawsuits against sweepstakes casinos.

In May, an Alabama woman accused Stake.us of running an illegal gambling operation. Since then, a dozen other similar lawsuits have appeared in the state.

According to US gaming and sports betting attorney Daniel Wallach, eleven of those were filed in June alone. In addition to Stake, most major operators, including VGW and High 5, are being sued.

In most of these cases, the plaintiffs argue that sweepstakes casinos violate Alabama laws because they require payment in exchange for a chance to win, employ gaming-style mechanics, and, despite the availability of free play, involve real-money gaming.

Despite the lawsuits, most defendants, except Pulsz Casino and Pulsz Bingo, have not yet left Alabama. Still, the number of sweepstakes casinos now listing Alabama as an ineligible jurisdiction is growing:

• McLuck Casino and sister sites Hello Millions, Mega Bonanza, Jackpota, and SpinBlitz
• Play Fame
• Sidepot
• Spinfinite
• Spree

The post Sweepstakes Casino Crackdown Spreads: New Jersey Ban Passes, Arizona and Alabama Target Operators appeared first on CasinoBeats.

Earlier this year, Murphy proposed to raise the tax to 25% for online sportsbooks and casinos. Currently, the rates are 13% for mobile sportsbooks and 15% for online casinos.

The governor estimated the hike would generate over $400 million in additional revenue.

As expected, operators opposed the hike. They claimed it would require them to reduce promos, which could drive consumers to illegal platforms.

While not officially confirmed, The Press of Atlantic City reports that lawmakers agreed on a 19.75% rate on Monday, aiming to satisfy the government and operators’ requests.

The legislature must pass the 2026 budget by July 1, marking the start of the new fiscal year.

Balance Between Record Revenues and Fairness to Operators

Last week, Gov. Murphy told The Press of Atlantic City that the state was seeking a balance between increasing online gambling revenue and fairness to the industry and its customers.

“We want to be competitive. We want to be fair to our taxpayers, and we want to be fair to those who participate in the industry.”

He emphasized that New Jersey paved the way for legal sports betting in the US. He added that the state wants to further the progress.

New Jersey stands in the middle among US states regarding its sports betting and online casino taxes.

There have been talks about raising it, including a bill last year. That proposal by Sen. John McKeon would’ve increased the tax to 30%. While his bill failed, McKeon predicted that a hike is inevitable.

Now that it seems like it will become a reality. The new tax comes at a time when the online gambling industry is thriving in New Jersey.

In May, the state’s total gambling revenue was $614.7 million. Online casinos reported a 28.5% increase compared to May 2024, while sports betting saw a 30.2% growth year-over-year.

Additionally, land-based casinos had a strong performance, reporting a 10.9% yearly increase.

Truist: Substantial Increase, but Manageable

Analysts from Truist Securities believe the cost increase for operators will be manageable, especially considering tax rates in states like New York and New Hampshire, where the rate is 51%. Also, the increase is much lower than in Illinois.

Truist suggests that the increase could be mitigated through reductions in promotions alone. It added that a 50% mitigation in 2026 is “very reasonable and potentially higher afterwards.”

Truist also conducted a “back-of-the-envelope” analysis based on the latest twelve-month data to estimate the added financial burden for leading operators under the new tax rates, based on a 20% tax:

• FanDuel: Total impact of $67 million ($29 million in sports betting and $38 million in iGaming)
• DraftKings: Total impact of $56 million, ($20 million in sports betting and $36 million in iGaming)
• BetMGM: Total impact of $27 million ($5 million from sports betting and $22 million from iGaming)
• Caesars: Total impact of $18 million ($3 million in sports betting, $15 million in iGaming)
• Penn: Total impact of $4 million ($2 million from both sports betting and iGaming)

Operators Could Use Illinois Playbook to Offset NJ Tax Impact

While Truist estimates that the gross tax impact could cost FanDuel $67 million and DraftKings $56 million annually, the firm provided another outlook.

Truist estimates the new tax would reduce Flutter Entertainment’s 2025 adjusted EBITDA guidance by $35 million. For DraftKings, that number would be $30 million—figures that reflect expected mitigation efforts already built into the operator’s strategy.

This implies that the two operators might be able to mitigate over 40% of the added cost. That could be done through promotion reductions or operational changes.

Though it’s unclear whether New Jersey operators will follow suit, Illinois offers a recent example of how companies may respond to higher taxes.

Both FanDuel and DraftKings recently implemented a 50-cent surcharge in Illinois after the state voted to raise taxes for a second year straight. In 2024, the tax on gross gaming revenue jumped from 15% to 40%.

Then, about a month ago, lawmakers voted to add a tax on every bet in the state. Some estimates suggest that with the new tax, the effective rate in Illinois is close to 50% for the two gaming giants.

FanDuel acted first and announced the surcharge. It stated that it must pass on the costs to the consumers to protect margins. DraftKings followed suit shortly after. Investors reacted positively to both companies’ moves, suggesting they see that as a good strategic move.

As the New Jersey hike is expected to be less than 10% for both sports betting and online casinos, it’s unlikely that the operators will follow Illinois’ example.

The post New Jersey Raises Online Gambling Tax to 19.75%, Operators Face Up to $67M in Added Costs appeared first on CasinoBeats.

Sen. Kristin M. Corrado’s bill, S3080, passed unanimously with a 5-0 vote in the Senate’s State Government, Wagering, Tourism and Historic Preservation Committee on Thursday. 

The bill proposes to prevent any sportsbook from accepting wagers on prop bets involving college teams across all sports. 

The terms of the bill state, “A sports wagering licensee shall not offer or accept any wager on a player-specific proposition bet on any collegiate sport or athletic event.”

Ban On Prop Bets To Protect College Athletes 

Corrado stated that the purpose of the bill is to protect the growing amount of abuse that college athletes receive on social media from disgruntled gamblers. 

The Senator stated, “Proposition bets have led to a rise in the harassment of student-athletes and have threatened the integrity of college sports.” 

“I have heard about many individuals who have been the victim of online harassment because they didn’t perform to the expectation of a bettor who made a side wager.

This legislation will ban player-specific prop betting in New Jersey, which will help curb that appalling behavior, and make college athletic events safer for all participants.”

Earlier this year, the NCAA launched a campaign against the rise of bettors taking out frustrations on athletes. 

The campaign, titled “Don’t Be A Loser,” was launched after it was revealed that up to 1 in 3 student-athletes in high-profile sports receive harassment.

The campaign ran with the tagline: “Only a loser would harass college athletes after losing a bet.”

A study across 3,100+ athletes during major events uncovered that 12% of abuse is by “angry sports bettors”. Additionally, women received 59% more abuse than men. 

Target Abusers Not Betting Rules, Say Opponents

Bill Pascrell III, Esq., partner at Princeton Public Affairs Group, spoke on behalf of the state’s sports betting operators at the committee hearing.

Pascrell III commented that authorities should be focusing on the abusers, rather than making roundabout rules to try to reduce the abuse. 

He said the bill could have many unintended consequences, and: “As an alternative, and to be succinct, we should be increasing penalties for those who harass student athletes. Period. Full stop.”

Prop Betting Rife For Corruption

As well as players incurring the wrath of angry gamblers upon losing prop bets, the markets also tempt college players into defying NCAA betting rules. The NCAA prohibits college players from placing bets of any kind on college or pro sports. 

Earlier this year, Jalen Weaver was dismissed from the Fresno State Bulldogs for placing a $50 bet on himself to score over 11 points in a match. Weaver scored 13, indicating that the bet may have motivated him positively.

However, in the same scandal, teammate Mykell Robinson allegedly placed bets on the under for his points and rebounds prop lines. 

Former NBA player Jontay Porter is also facing a potential lengthy prison sentence for feigning injury to reduce his playing time in matches, which guaranteed the unders line was a winning bet for a gambling ring. 

Porter actively communicated his injury status during matches and pleaded guilty to federal wire-fraud conspiracy charges. He has also been banned for life from the NBA. 

Another basketball betting scandal was uncovered in the UK last week, with six players from the Surrey Scorchers sanctioned. 

A prop ban in New Jersey may go some way to reducing the impact of betting on college and basketball matches, but as the Porter and UK scandals show, the problem goes far beyond the NCAA in New Jersey. 

The bill will now move forward in the Senate, and if approved in a full vote, will proceed to the Assembly before being sent to the Governor for approval.

The post New Jersey College Prop Bets Ban Moves Forward In Senate appeared first on CasinoBeats.

Equating to a 20.5% year-on-year (YoY) increase from May 2024, growth was consistent across the Garden State’s retail casinos, iGaming, and sports betting divisions.

Of these, iGaming contributes more than $246.8 million to May’s totals, up 28.5% year-over-year (YoY) and a 4.9% increase from April’s $235.3 million takings. However, the majority of New Jersey’s iGaming revenue—$244.2 million—came in the form of online slots and table games, with online poker accounting for only $2.7 million.

Leading the iGaming partnerships, FanDuel and Golden Nugget Atlantic City enterprise managed to secure $54.5 million in revenue.

Meanwhile, DraftKings and Resorts Casino Hotel followed, posting $48.1 million, and BetMGM with Borgata in third, raising $32.5 million. Behind the leaders, Caesars Digital, with its combined New Jersey ventures, Caesars Palace and Tropicana Atlantic City, reported iGaming revenues for May as $18 million.

May’s figures reinforce New Jersey’s status as a leading iGaming sector and follow on the heels of its impressive 2024 record revenues.

New Jersey Sports Betting Growth Outstrips Online Casino for May

While iGaming showed significant growth, sports betting also generated an overall revenue figure of $102.5 million, surpassing May 2024’s total of $78.8 million, indicating a 30.2% year-over-year growth. Figures also show a preference for online sports betting in New Jersey, with digital wagering accounting for $98 million of last month’s revenue.

Despite March 2025 seeing New Jersey sportsbooks posting disappointing results, May’s figures show the sector has rebounded well. Here, FanDuel again topped the table with its online Meadowlands sportsbook, which raised $44.3 million, leaving DraftKings trailing in second, reporting $28.3 million for the month.

The two market leaders were followed by Fanatics  ($6.2 million), Bet365 ($6.0 million), and ESPN Bet ($4.9 million).

New Jersey’s total sports wagering handle also increased by 12.4% year-over-year (YoY), reaching $1.01 billion in May. Online bets accounted for more than 95% of its May betting handle, drawing in $967.1 million, with retail betting accounting for just $43.5 million.

Retail Recaptures the Throne for May

Land-based casinos in New Jersey earned $265.3 million in May, again up from $239.3 million in May 2024, a 10.9% uptick. Of this figure, slot machines generated $194.8 million, which also rose 7.5% YoY, with card and table games bringing in $70.5 million, up over 21.9%.

In-person casino venues saw Borgata Atlantic City remain the highest-grossing casino in New Jersey, peaking at $51.1 million. Hard Rock and Ocean Casino trailed, posting $36.5 million and $30.2 million, respectively.

As a result of the marked increases in all three sectors from May 2024’s tallies, New Jersey collected $66.8 million in gambling-related taxes last month. iGaming contributed $37.1 million, while online sports betting generated $12.7 million, with an additional $454,318 coming from retail sportsbooks.

Year-to-date numbers through May 2025 showed New Jersey’s gambling revenue totaling $2.74 billion, a 6.6% increase from the same period in 2024. 

iGaming leads, having recorded $1.16 billion, shading in-person casino wagering revenues of $1.12 billion and sports wagering at $460.2 million.

Overall, New Jersey’s May 2025 gambling revenue figures demonstrate that, across the board, the industry is flourishing. This is despite the ongoing threat to the Garden State’s sports betting revenues following Kalshi’s recent federal court ruling to operate in the state.

The post New Jersey Online Casino Revenue Soars 28.5% Year-Over-Year in May to $246.8 Million appeared first on CasinoBeats.

High 5 Casino ceased operations in New Jersey in February. Despite that, the state’s loss-recovery statute allows individuals who have lost money or property from illegal gambling to seek recovery of their losses within six months.

US gaming law and sports betting lawyer Dan Wallach brought the lawsuit to light through a post on X. According to the post, J. Meyers Esq, a Denville, New Jersey law firm, brought the suit in the Bergen County Superior Court.

The law firm seeks to recover losses suffered through gambling by Mitchell Dallas from Kansas City, Missouri, Julian Bargo from Cliffside Park, New Jersey, and “John/Jane Does 1 through 100, an unknown number of individuals, residency unknown.”

The New Jersey lawsuit comes a few months after a Washington jury ordered High 5 to pay $24.9 million in damages to players in the state.

CT Suspended High 5 Games’ License, Could NJ Do the Same?

High 5 Entertainment is in a unique situation compared to other sweepstakes casino operators. The company serves as a content supplier for regulated retail and online casinos through High 5 Games. Some of the most popular games by High 5 Games include the DaVinci Diamonds slot series.

High 5’s unique situation landed the company in hot water in Connecticut. In March, the state’s Department of Consumer Protection Gaming Division suspended the content supplier’s license as a result of the company operating an illegal gambling activity via High 5 Casino.

Shortly after, slots like DaVinci Diamonds Extreme, Beti the Yeti, Secrets of the Forest, and Dangerous Beauty disappeared from Connecticut casino libraries.

After the license suspension, High 5 Games committed to compliance and working with regulators. Subsequently, the company settled with the regulator for nearly $1.5 million at the end of May, and had its supplier license reinstated.

That sum included $643,000 in restitution to customers who lost money on High 5 Casino. Additionally, nearly $800,000 would be allocated towards consumer complaint resolution programs, education, protection, enforcement, and litigation.

Given that High 5 Games holds a supplier license in New Jersey as well, the state could follow Connecticut’s lead. Although the New Jersey Division of Gaming Enforcement has not taken an active role against sweepstakes platforms, mounting regulatory pressure is building.

An active bill to ban sweepstakes casinos, endorsed by the New Jersey Responsible Gaming Task Force, could lead to higher pressure on the sector, particularly on High 5 Games.

High 5 Casino Has Exited all iGaming States

Scrutiny of sweepstakes casinos has been building across the US. This year alone, lawmakers from a dozen states introduced legislation to ban the platforms. So far, only Montana has passed a ban. However, others, such as Louisiana, Nevada, and Connecticut, are just a governor’s signature away from a ban.

While it has faced issues in Connecticut and now New Jersey, High 5 Casino has been one of the most active platforms in terms of exiting states with potential bans or following regulators’ requests.

In February, the platform exited Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island, and West Virginia. What’s notable about these states is that they have all legalized real-money online casinos. High 5 Games holds a content license in each of them.

A month later, High 5 Casino was also among a large number of sweepstakes operators that exited New York in anticipation of a potential ban.

The post High 5 Entertainment Faces Class-Action Lawsuit in New Jersey over High 5 Casino appeared first on CasinoBeats.

While NJ couldn’t match the record-setting March results, online platforms delivered their second-highest month ever with $235.2 million in adjusted gross gaming revenue. That represented a 25.2% increase from the $187.9 million reported in April 2024.

In contrast, the Atlantic City casinos brought in $211.0 million last month, a decrease of 2.7% compared to the $216.8 million reported for April 2024. That marked the third straight month of declining revenue for the retail casinos. 

The difference of $24.2 million is the largest recorded between the two sectors. In comparison, it was just under $13 million in March, while it was about $4.3 million in February.

Online casinos overtook the retail properties in October 2024 for the first time (in a non-pandemic month). Atlantic City properties bounced back and reclaimed the top spot in November and December, but iGaming has led the way since the beginning of the year.

April Brings Strong Growth For New Jersey Online Casinos

After enjoying a record $2.39 billion in revenue in 2024, online casinos have continued to deliver double-digit growth since the start of the year. Year-to-date revenue through April reached $908.4 million, an increase of 21% compared to last year:

• January: $221.6 million (an increase of 20.9% year-over-year)
• February $207.8 million (up by 14%)
• March $243.9 million (up by 23.7%)
• April $235.2 million (up by 25.2%)

FanDuel Casino took the number one spot in April with $52.9 million in revenue, an increase of 35.3% year over year. DraftKings was close second with $46.9 million generated, an increase of 19.5%. BetMGM took the third spot with $29.6, an increase of 27.9%.

Notably, Fanatics Casino continued to gain ground in the market. Although it was not live in April 2024, the $7.4 million generated in April 2025 was a 38.7% increase from March.

Retail Casinos Struggle, But Hopes Lie in the Summer

Atlantic City casinos started the year on a positive note with a 2.6% increase in revenue in January compared to January 2024. However, the nine properties declined in the following months, with the most significant decrease in February.

In the first four months of 2025, the retail casino sector took in $855.4 million, a decrease of 2%. Notably, the gap to online casinos stands at $53 million through four months.

• January: $210.1 million (2.6% increase year-over-year)
• February: $203.5 million (3.8% decrease)
• March: $230.9 (3.7% decrease)
• April: $211.0 (2.7% decrease)

It’s important to note that Q1 is traditionally slower for Atlantic City casinos due to the unfavorable weather. May has brought warmer-than-usual temperatures, so the sector hopes to post stronger results. Historically, the summer is a high point for Atlantic City casinos, with revenue reaching almost $300 million in August 2024.

Advertising Under Scrutiny as Problem Gambling Rates Rise

The continuous growth of iGaming in the Garden State, however, has led to concerns around problem gambling rates. 

Recently, lawmakers introduced two new bills that would regulate where gambling ads can be displayed and mandate a study into how specific language in marketing campaigns can influence bettor behavior. 

A5562, introduced by Assemblyman Clinton Calabrese and Assemblywoman Garnet Hall, seeks to “deter illegal or irresponsible gambling, challenge perceptions of gambling, and encourage the use of responsible gambling tools.” 

A second bill would mandate a study to determine the “effectiveness of various words and phrases” in adverts for online casinos and sportsbooks. 

The post New Jersey Online Casinos Deliver Double Digit Growth in April appeared first on CasinoBeats.

Two new bills are being considered that would regulate where gambling ads can be displayed and mandate a study to investigate how the language used in such ads can influence the behavior of bettors.

Assemblyman Clinton Calabrese and Assemblywoman Garnet Hall’s bill A5562 was reported favorably out of the Assembly Tourism, Gaming, and the Arts Committee on May 8. Then, on May 12, Sen. John McKeon and Sen. Renee Burgess introduced a companion bill, S4366, in the Senate.

Advertising, particularly as it relates to young adults, is a particular focus of the bills. They propose banning gambling ads near schools and colleges and prohibiting ads that “predominantly” target individuals under age 21.

As specifically stated, A5562 seeks to “deter illegal or irresponsible gambling, challenge perceptions of gambling, and to encourage the use of responsible gambling tools.”

New Jersey Study To Focus on Language in Gambling Ads

If approved, the state’s Division of Gaming Enforcement (DGE) would arrange a study to determine the “effectiveness of various words and phrases” in online casino and sportsbook ads.

At a minimum, the study seeks to address the following topics:

1.       Whether certain words or phrases resonate with members of the public

2.       If certain words or phrases are more likely to cause bettors to act responsibly

3.       Whether the placement of words or phrases in different locations on an ad may better draw the attention of viewers

4.       If the size and formatting of fonts used in an ad, such as bold or underline, may influence the message

5.       Whether the use of different messages would be more effective in reaching problem gamblers

6.       If repeated use of the same word or phrase decreases its effectiveness

The study will be completed within 12 months, with all findings published on the DGE’s website.

The DGE is also required to identify three to ten keywords or phrases to be used in casino gaming and sports betting ads throughout the state. It would then adopt regulations requiring at least one of the recommended keywords or phrases to be included in ads at a “frequency that optimizes their effectiveness.”

Addiction Concerns on the Rise

As the sports betting industry continues to expand, so do concerns about gambling addictions. A study published in February by the UC San Diego Qualcomm Institute and School of Medicine found that online research for gambling addiction-related terms, such as “Am I addicted to gambling,” had increased 23% since the U.S. Supreme Court’s landmark ruling in 2018.

At 38%, New Jersey experienced one of the biggest jumps. Other states with noticeable spikes included Ohio (67%), Pennsylvania (50%), Massachusetts (47%), and New York (37%).

As such, the study called for stronger safeguards for online sportsbooks, including self-imposed betting limits and timeouts.

John W. Ayers, one of the study’s co-authors, wrote, “History has shown us that unchecked industries — whether tobacco or opioids — inflict immense harm before regulations catch up. We can either take proactive steps to prevent gambling-related harms or repeat past mistakes and pay the price later.”

iGaming NJ’s Main Revenue Driver

Gambling revenue in New Jersey hit $6.3 billion last year, a 9% jump from 2023, surpassing the previous record of $5.7 billion. The biggest driver was iGaming, with revenue increasing 24% to a record $2.3 billion.

That growth has carried into 2025. The DGE reported total gambling revenue of $546.1 million in March, representing a 3.7% year-over-year increase and a 12.6% increase from February.  

The post New Jersey Lawmakers Target Gambling Ads Amid Addiction Concerns appeared first on CasinoBeats.

As part of his ruling, Judge Edward Kiel of the US District Court for the District of New Jersey granted Kalshi a temporary injunction against the New Jersey Division of Gaming Enforcement (NJDGE). The decision granted blocks the state from enforcing its earlier cease-and-desist order issued to prevent Kalshi’s sports event futures contracts.

What the Kalshi Ruling Means for New Jersey

 The Kalshi New Jersey case ultimately centers on whether sports prediction markets are subject to the jurisdiction of the Commodity Futures Trading Commission (CFTC) or whether they must adhere to state-level gambling laws.

Already regulated by the CFTC, Kalshi maintains that its sports-related contracts are legitimate financial platforms as opposed to traditional gambling formats. Judge Kiel wrote in his ruling, “I am persuaded that Kalshi’s sports-related event contracts fall within the CFTC’s exclusive jurisdiction and am unconvinced by the defendant’s arguments to the contrary.”

The NJDGE argues that Kalshi’s activities are, in fact, a direct violation of New Jersey’s gambling laws through the provision of unlicensed sports betting products. Judge Kiel stated that sporting events carry “financial, economic, or commercial consequence,” dismissing NJDGE’s claim that they fall outside this federal oversight.

Kalshi’s victory in New Jersey is the second federal court ruling this month, following a similar judgment in Nevada. Both rulings have strengthened Kalshi’s national legal footing and allowed it to continue operating in all 50 states without further state-level interference for the time being. 

Kalshi’s legal momentum in the court system illustrates the power struggle between federal regulators and states looking to preserve their gambling tax revenues.

Implications for Sportsbooks and State Tax Revenues

Last year, New Jersey alone generated over $138.3 million in online sports betting tax revenue. This income will undoubtedly be eroded if prediction markets like Kalshi’s continue to operate untaxed and unregulated at the state level.

The ruling affects state regulators and firms such as DraftKings and FanDuel, which have already invested heavily in obtaining state licenses to operate. Conventional sportsbooks may be forced to compete with federally regulated platforms such as Kalshi, the economics of which could cannibalize the sports betting industry.

Aside from giving Kalshi the green light to continue operating in Nevada and New Jersey, the joint rulings have inflamed the debate about the regulatory uncertainty of sports event contracts at the federal level.

At its core is CFTC Rule 40.11(a)(1), which prohibits contracts related to “gaming” or activities that are considered unlawful under current state or federal law. In addition to the confusion, the CFTC also recently cancelled planned roundtables on sports-related contracts without giving any explanation.

Other states that have issued cease and desist orders to Kalshi include Ohio, Montana, Pennsylvania, and Maryland. The prediction market platform has already filed legal motions in the latter.

Additionally, legal experts now believe that these early court victories could provide the foundation for the long-term viability of prediction markets in the US.

Nevertheless, with millions in state tax revenues and regulatory controls under threat, the conflicting arguments circling the state gambling authorities and federally regulated prediction markets will continue to intensify.

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Data released on April 16 by the New Jersey Department of Gaming Enforcement (NJDGE) showed that total gambling revenue reached $546.1 million. This represented a 3.7% increase over March 2024 and was 12.6% above the previous month.

The most significant driver was iGaming, which rose 23.7% year-over-year. Despite that increase, it marked just the fourth time iGaming has generated the most gambling revenue in New Jersey in a single month.

Revenue from online and retail sportsbooks dropped 20.5% year-over-year to $71.3 million, as a lack of upsets in March Madness led to bettor-friendly outcomes. This was also down from February’s total of $73.6 million.

As for handle, $1.11 billion was spent across online and retail, reflecting a 16.5% decrease from last year. 

FanDuel Tops New Jersey Sportsbooks in March

There are 14 active online sportsbooks in New Jersey, down from 27 in 2018.

FanDuel reported the largest March revenue at $23.4 million, below February’s $33.9 million. At $110.4 million, FanDuel also has the highest year-to-date revenue.

DraftKings generated $19.9 million in March, down approximately $400,000 from the previous month. BetMGM was a distant third in revenue at $8 million, followed by Fanatics Sportsbook ($4.4 million), Caesars ($3.2 million), and bet365 ($2.8 million).

Meanwhile, Meadowlands ($2 million) topped all retail sportsbooks. Monmouth Park ($432,393) was second. 

Online betting took in $1.06 billion in wagers, while retail sportsbooks collected $44.4 million in wagers.

A few factors may have contributed to the decline in revenue, such as the lack of upsets in the NCAA Tournament. The men’s tournament saw all four No. 1 seeds reach the Final Four for the first time since 2008 and just the second time ever.

iGaming Remains the Key Growth Driver

FanDuel and Golden Nugget Atlantic City were the top performers in iGaming, with their $52.3 million revenue, which represents a 25.7% year-over-year increase.

Close behind were DraftKings and Resorts Casino Hotel, up 20.3% year-over-year to $49.6 million.

Next were BetMGM and Borgata, at $31.6 million, followed by Borgata’s own platform, at $22.4 million. Caesars and Tropicana Atlantic rounded out the top five, at $15.7 million.

In total, $241.3 million came from “other authorized games,” such as online slots. The remaining $2.6 million was attributed to online poker.

Soft2Bet to Enter NJ, Regulator Jostles With Kalshi

As iGaming totals continue to increase, New Jersey is preparing to introduce a new online gaming platform. Soft2Bet is set to arrive this summer in the Garden State, through a market agreement with Caesars Entertainment.

The state regulator is also embroiled in a legal battle with prediction markets Kalshi, which alleges that its sports event contracts are legal despite being ordered by NJ to cease and desist. 

Soft2Bet, which holds over a dozen global licenses across jurisdictions, claims its software has boosted player screen time by 400%. 

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