KEY TAKEAWAYS
- New Jersey is the first state to make data-driven responsible gaming requirements mandatory.
- Operators must flag at-risk players using set thresholds and apply three intervention phases.
- The state added RecoverMe, a free therapy app, and tied the rules to its Supreme Court case against Kalshi.
New Jersey turned its responsible gambling playbook into codified, mandatory rules this week.
Attorney General Jennifer Davenport and the Division of Gaming Enforcement (DGE) announced Tuesday that data-driven responsible gambling requirements now carry the force of state regulation for online operators.
“We’re making the consumer safety net even stronger,” Davenport said during a news conference Tuesday. “These regulations require that operators monitor their customers for specific criteria, indicating problematic gaming.”
The rules require every operator to appoint a responsible gambling lead. Operators must also use mandatory play thresholds and behavioral triggers to spot patrons who may need help.
When a patron meets those criteria, the operator must review the account. If the review shows signs of problem gambling, the operator must add the patron to an at-risk list and apply three phases of intervention.
“Our regulations identify and respond to gambling-related harm,” DGE Interim Director Mary Jo Flaherty said. “When signs of problem gaming arise, operators must act to ensure early intervention and support, tiered to individual need.”
Why New Jersey made problem gambling rules mandatory
The DGE launched its data-driven Responsible Gaming Initiative in January 2023 and told online operators to analyze player data for warning signs. Those signs included:
- Gambling time that increases week to week
- Repeated self-imposed cool-off periods
- Wagering down to less than $1
- Rapid large deposits
“These criteria identify patterns of behavior that may indicate gambling-related harm,” DGE Responsible Gaming Coordinator Jamie McKelvey said. “A trigger doesn’t automatically mean that someone has a gambling problem. Instead, it requires the operator to conduct a due diligence review.”
The 2023 responsible gambling program also set the intervention model:
- Level 1: sends automated outreach
- Level 2: requires a video tutorial before play continues
- Level 3: brings direct contact from the operator’s responsible gaming team
If the operator believes a bettor is at risk after the live interaction, the account will be closed, McKelvey said.
The officials said operators already followed similar responsible gambling best practices, but that no uniform, enforceable standard existed for when a review and phased intervention must happen.
Officials aim to keep New Jersey bettors safe
The state also pointed to media reports that some operators used aggressive marketing to target gamblers who showed signs of a gambling disorder.
“We have a responsibility to keep the gaming industry accountable and ensure that help is available to those who need it,” Davenport said.
Gov. Mikie Sherrill said New Jersey “continues to lead the way in developing data-driven best practices for Internet gaming and online sports wagering.”
“We continue to work to make the online world safer and to focus on safeguards that protect people’s well-being and help connect those who are struggling with the support they need,” Sherrill said.
What RecoverMe offers New Jersey gamblers
The state also partnered with RecoverMe, a cognitive behavioral therapy app developed by physicians.
Anyone located in New Jersey can use it for free with the code NJ100. The responsible gambling app combines:
- Cognitive behavioral therapy and mindfulness tools
- Validated assessments
- Gambling tracking
- New Jersey-specific crisis services
RecoverMe is the DGE’s second free responsible gambling service. Last year, the division started offering GamFin, a confidential financial counseling service for gamblers and their families.
How PG rules connect to New Jersey fight with Kalshi
New Jersey tied the responsible gambling announcement directly to its U.S. Supreme Court fight with Kalshi. The state argued that its mandatory rules show why prediction markets must answer to state gambling laws.
“Ads are everywhere. You can gamble anywhere, but when you wager in New Jersey, you should be protected by our strict gaming laws,” Davenport said. “That’s why it’s so problematic that Kalshi claims to offer legal sports betting in all 50 states, but refuses to follow state gaming laws.”
New Jersey filed its petition for the justices to take up Flaherty v. KalshiEX on Sept. 2, after the Third Circuit Court of Appeals sided with Kalshi.
Eleven amicus briefs support the petition, including filings from Ohio and 38 other states plus the District of Columbia, the NFL and the American Gaming Association. Kalshi’s response is due Nov. 9.
