New NJ Online Gambling Rules Would Impact Live Dealer Games, Data Security

While the changes are relatively minor in the grand scheme of things, some will impact NJ online casinos and how they do business.

The NJ online gambling regs

The NJ Division of Gaming Enforcement released its proposed new regulations that deal with the online gambling.

At the top level, here’s what the proposed changes are:

• Allowing unlimited “bet behind” wagers for live dealer blackjack.
• Requiring casinos to employ an information security officer (ISO).
• Makes temporary regulations regarding ACH payments permanent. Almost all current operators were already facilitating ACH payments. The regulations also state that “casinos must block the account after 5 failed attempts to use an ACH transfer as a funding method.”
• Makes temporary regulations about progressive slot jackpots permanent.
• Forces online gambling users to establish a residential address; PO boxes are no longer allowed.
• Clarifies responsible gambling protocols and codifies how users may suspend their accounts without self-excluding.
• Sets up requirements for remote gaming systems (aka game providers for online gambling platforms), stating that “entities must ensure the security of their systems.”

Read the full text of the new proposed rules here.

Changes for live dealer blackjack

The most important changes may be regarding online games with “live dealers.”

Currently, only Golden Nugget and Betfair offer blackjack (as well as roulette and baccarat) with live dealers. In this game format, the games are conducted online, but with a real person dealing cards on camera in a studio in Atlantic City.

The live dealer format has seen success at GN. The new rules should only help their bottom line — Golden Nugget is already the market leader for online gambling — and perhaps encourage others to try the format.

Obviously the cost of providing a live dealer format is more than an automated or online dealer. Opening up new tables requires new dealers, after all.

But the ability to take “bet behind” wagers should change the calculus. Sites can now take wagers from anyone who wants to bet on the outcome of someone else’s hand, while they watch passively in the background. (As the proposed regulations note, the “bet behind” format is common in European casinos.)

New employees for information security

The proposed regulation here would require an ISO for all casinos. The ISO “is responsible for the integrity and security of all casino computer systems, including the protection against data breaches.”

More from the proposal:

The ISO must be separate and independent from the Information Technology Department. … sets all computer security policies. … may be employed by a New Jersey casino licensee or its corporate holding company. … must report to the audit committee of the board of directors unless a different reporting line is proposed to and accepted by the Division.

The new positions would create more internal controls, which is generally not a bad thing when talking about regulated online gambling.