New Jersey Regulators Issue Ultimatum to Affiliates

Sun, Jun 7, 2015

The New Jersey Division of Gaming Enforcement Director David Rebuck (l.) last week issued a memo to affiliates, giving them 150 days to comply with state law, and that if any of them continue to promote illegal offshore iGaming sites they will face enforcement action. At the same time, these sites have until November to “wind down” their relationships with the illegal sites.

Since the start of legal iGaming in New Jersey, regulators have struggled to understand affiliate marketing. Just two weeks before launching, the Division of Gaming Enforcement decided that affiliates needed an “ancillary” license rather than just a vendor registration, causing much confusion.

While just a handful of affiliates have been licensed, there are many that promote the illegal sites alongside the legal, regulated New Jersey online casinos. While the DGE has sent letters to some of these sites, including CardsChat.com, PokerSource.com, RakeBrain.com, Pokersites.com, RaketheRake.com, they issued no policy statements until last week.

A memo released by the agency gives affiliates 150 days to abide by state regulations that prohibit such joint promotion. At the end of that time, the DGE says it will conduct a review of the affiliates and suggests that enforcement action could be forthcoming.

At the same time, DGE Director David Rebuck says it will not consider actions by affiliates promoting illegal U.S. facing casinos post-UIGEA, that would bar them from licensure.

“After careful consideration, the division has made a determination that the conduct of affiliates after UIGEA can be distinguished from past conduct of online operators and payment processors,” said Rebuck.

So affiliates that want to operate in New Jersey will not have that history held against them, and if they comply with the standard DGE investigation, most of them should get licensed, as long as they’re in compliance with current regulations.

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