The New Jersey Division of Gaming Enforcement (DGE) has been cracking down on violations at casinos and racetracks across the Garden State. In a move highlighting the state’s commitment to responsible gambling practices and underscoring the need for stringent age verification procedures within the industry, the regulator has ordered five Atlantic City casinos and a horse racing track to forfeit over $77,000 in gambling winnings obtained by individuals who were not legally permitted to participate.
DraftKings, the online sportsbook and casino platform, was also penalized by DGE with a fine of $7,500 for comparable infractions. Its competitor, Rush Street Interactive, received a $2,000 fine for accepting wagers on unapproved events and allowing pre-match bets on games that were already in progress.
The majority of these individuals were confirmed to be underage, raising serious concerns about the current measures in place to prevent minors from accessing casino floors. The news comes months after state legislators tabled a bill that would make education and treatment for compulsive gambling an optional penalty for underage gambling.
The funds that have been forfeited will be allocated to the state for the purpose of funding programs aimed at addressing compulsive gambling, as well as initiatives that support senior citizens and individuals with disabilities.
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Unverified Winnings Forfeited After Escrow Period Lapses
The majority of the incidents comprised customers who were requested to present identification while collecting a manual payout from slot machines or other games. In these instances, it was discovered that the customers were below the legal age or their identification documents were not up to scratch.
From there, the winnings of the patrons were withheld by the casinos, and they were placed in an escrow account to allow them an opportunity to demonstrate that their gambling activities were lawful. The designated time frame of at least six months has now lapsed, and as per the state DGE, these gamblers are now regarded as prohibited patrons.
During the final two weeks of October, the state regulator issued orders for the forfeiture of funds. These enforcement actions stem from incidents dating back to late 2020, though details were only made public in November 2023.
Resorts Made the Biggest Forfeiture
The largest forfeiture, amounting to over $51,000, originated from Resorts Casino Hotel, where the illegal activity was traced back to 2020. This substantial sum indicates a concerning pattern of underage gambling and potential systemic weaknesses in the resort’s age verification protocols.
The Ocean Casino Resort surrendered more than $7,500, while Bally’s relinquished over $5,600. A horse racing track forfeited an amount exceeding $4,400, and the Golden Nugget surrendered over $4,200.
Other participating Atlantic City establishments included Tropicana Atlantic City, which forfeited $15,000), and Harrah’s Resort Atlantic City with almost $900 forfeitures.
Freehold Raceway, a horse racing track located outside of Atlantic City, also contributed to the forfeitures, surrendering more than $4,000 in winnings obtained from underage and self-excluded gamblers. Meanwhile, DraftKings, which operates an online sportsbook and casino platform in New Jersey, received a $7,500 penalty from the state regulator.
Underage Gambling Remains an Issue
According to records, over 60 underage patrons were found gambling at various casinos between 2020-2023. The largest violations occurred at Ocean Casino Resort, which had to forfeit $778 after 23 minors were caught. Golden Nugget was next with 18 underage gamblers leading to a $422 forfeiture. Resorts had 12 such cases.
Most incidents involved patrons asked to provide ID when claiming slot machine payouts. Those under 21 often used inadequate or false identification to gamble. While the individual amounts are small, the overall total – over $2,487 – shows underage access remains an ongoing challenge casinos must address. Strict carding of all patrons is critical.
The presence of underage individuals within casino environments is a stark violation of state regulations and a breach of public trust. It raises significant questions about the effectiveness of existing age verification procedures and highlights the need for enhanced security measures to prevent future occurrences.
The precise number of underage individuals involved remains undisclosed, but the substantial amount of forfeited winnings suggests a systemic issue that requires swift and decisive action. This is particularly concerning as sports betting continues to make inroads in college campuses, according to the New York Times.
Self-Exclusion Policies Often Ignored
Self-exclusion allows problem gamblers to ban themselves, but some still find ways to gamble. Resorts had to forfeit over $33,000 related to multiple self-excluded patrons. Bally’s forfeited $5,641 for three such cases. Freehold Raceway and Golden Nugget saw over $4,400 and $2,300 respectively from two excluded gamblers each.
These violations undermine the integrity of New Jersey’s self-exclusion program. The DGE is committed to ensuring anyone who signs up is truly restricted from gambling. Close surveillance and ID verification upon entry are important deterrents.
These individuals had voluntarily requested to be barred from all licensed casinos and racetracks within the state, demonstrating a personal commitment to responsible gambling. However, they still managed to circumvent the system and engage in prohibited activities, highlighting vulnerabilities in the self-exclusion program and raising questions about its effectiveness in safeguarding individuals from potential harm.
Online Operators Face Penalties Too
Online gambling has grown rapidly in New Jersey legalizing online casinos in 2013. However, the DGE also oversees compliance online. DraftKings was fined $7,500 for allowing a self-excluded player to create an account, while Rush Street Interactive paid $2,500 for improper event wagering.
Regulators emphasized all licensees, whether brick-and-mortar or online, must follow all rules to maintain their social responsibility obligations to consumers. Strict protocols are equally important in virtual and physical environments.
Wrapping Up
All forfeited funds go to the state of New Jersey to support programs for problem gambling treatment and various social services. This includes counseling and prevention efforts to help those with gambling addictions. Services for senior citizens and residents with disabilities also benefit.
While individual amounts may seem small, collectively over $77,000 can go a long way to support communities impacted by gambling. Regulators will continue monitoring operators to identify and address violations to ensure these important programs receive necessary funding.
