States are free to make their own rules for online gaming regulation, meanwhile regulations are evolving at the federal level.  New Jersey has been a trailblazer in setting online gaming regulations, but most states are approaching it cautiously.  States are the key to adoption since their own rules dictate how users may access such services.,.

Determined to say yes to both gaming fans and the tax revenue generated by a multi-billion-dollar industry, New Jersey was the first state to create a strict regulatory framework to allow some forms of internet gaming.

Their resounding success has since been a model for other states to follow.

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New Jersey’s Gaming Compliance Oversight

In the public interest, The Division of Gaming Enforcement — New Jersey’s oversight authority — was established in 1977 to ensure the industry’s integrity. The department has a long tradition of enforcing gaming rules overseeing all gambling operations from Atlantic City casinos to mobile gaming platforms. Under the Casino Control Act, they investigate all license applicants and prosecute regulatory violations.

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Online Gaming History of New Jersey

In November of 2010, New Jersey became the first state to legalize select forms of mobile gaming. In-state sports betting, authorized in 2012 paved the way for, out-of-state sports wagers to be permitted in 2018. It took five years of legal wrangling to convince the regulators. 

New Jersey’s leadership practices serve as a guide for other states looking to overcome a steep learning curve. Since legalization of mobile gaming in New Jersey, the industry has a near-perfect record for gaming compliance.  widespread public support has also been widespread. What is its secret for success? Mandating the use of geolocation services has been key in achieving the perfect record and in being among the most progressive states in the nation when it comes to internet gaming.

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What Makes Location Important?

Internet gaming is complicated — it’s still illegal or only partially legal in some states. Each state issues licenses based on its unique regulatory developments causing the platform operators to implement state by state methodologies to comply. With few exceptions, online gaming platforms can cater only to in-state gamers unless they comply with other jurisdictions’ rules. Managing compliance requires verification of player’s location throughout their gaming session. When players are on the move, it takes robust technology to verify the location of gamers.  There are over the 45 various jurisdictions that currently allow some form of online or mobile wagering.

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New Jersey Gaming License Process

Granting of Gaming licenses in New Jersey are based on the types of games offered and factors such as business associations with land-based casinos. The process is painstakingly detailed in its level of diligence yet relatively simple yet.

New Jersey’s Office of the Attorney General website — nj.gov/oag — lists all rules, updates, and recent regulatory changes and provides downloadable application forms. Candidates are asked to submit the appropriate regulatory fees, hard copies of forms along with all the supporting documents. A deposit of $100,000 is required, and once approved, the online gaming license is good for five years.

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How Does Locance Help With Mobile Gaming Compliance?

As a leader in geolocation technology, Locance offers the best in real-time player location verification for gaming platforms, both mobile and desktop oriented.  Locance pinpoints location of player devices with a sophisticated four-pronged verification process, including:

• IP Address - IP address narrows down a gamer’s location to within a few miles. While a ubiquitous solution for online device location, the increasing use of other connections such as satellite, mobile gateways, and anonymous proxies make it undependable on its own. In certain jurisdictions, IP address alone is not sufficient to confirm user location.
• Browser Location - Locance’s browser location technology gathers location data from mobile and desktop devices using Wi-Fi, Cell site, GPS, and other signals to determine the best available location.
• Device Profiling - The Device Profiling technology analyzes device attributes, connection details and behavioral heuristics to identify suspicious configurations, anomalous conditions, and use patterns that could signal fraudulent activities. It’s future-proof technology available through the power of the cloud.
• Geofencing - Locance's Smart Zone technology allows operators to determine whether a device is within an authorized area with confidence based on the device location, its accuracy, boundary conditions, and local regulatory needs.

Inspired by New Jersey’s success almost all states have enacted online gaming legislation, have legislation pending, or have had public debate about legislation. Over time, more states will allow some form of internet wagering, but while gamers can celebrate, platforms should remain vigilant. As long as each jurisdiction has a different approach, selection of a robust and proven solutions for compliance with regulations remains a must.

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About Locance

Locance is the leader in geolocation compliance for gaming and lottery. We have helped global operators in the US, Canada and Europe to verify user transactions and get the "green light" to place wagers and enjoy their mobile gaming experience.

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Learn how Locance helps with Internet Gaming Compliance and grab our Mobile Gaming Product Brief.

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Find out how our customers get compliant with geolocation regulations. Read our Mobile Gaming White Paper.

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