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More Details Revealed For New Jersey’s $251K Responsible Gaming Civil Penalty to Caesars Sportsbook

Robert Linnehan

By Robert Linnehan in Industry

Published:


Syndication: The Record
The seal of New Jersey on the rotunda floor in the newly-renovated Statehouse in Trenton on Wednesday, March 22, 2023.
  • The New Jersey Division of Gaming Enforcement released additional details on Caesars Sportsbook’s civil penalty
  • The division fined Caesars Sportsbook $251,000 for issues related to responsible gaming
  • Caesars Sportsbook failed to send the division its self-exclusion list and allowed self-excluded users to wager on other platforms, among other violations

The New Jersey Division of Gaming Enforcement released additional details for a $251,000 civil penalty to Caesars Sportsbook related to non-compliance of responsible gaming matters.

Following an Open Public Records Act request, the New Jersey Division of Gaming Enforcement (DGE) released its action in lieu of complaint to Caesars Sportsbook, which detailed several violations of New Jersey administration codes regarding responsible gaming.

The DGE’s civil penalty of $251,250 fine, and an additional disgorgement of $45,465.38, is one of the largest doled out to a licensed New Jersey online sports betting operator since the legalization of online sports betting in 2018.

According to the action in lieu of complaint against Caesars Sportsbook, the New Jersey DGE noted the sports betting operator failed to comply with New Jersey administration codes N.J.A.C. 13:69C-14.2(b), N.J.A.C. 13:69C-14.2(c), N.J.A.C. 13:69G-2.2, N.J.A.C. 13:69G-2.3, and N.J.A.C.13:69G-2.4.

“Caesars Sportsbook failed to comply with those regulations by displaying signage that did not contain the appropriate language in accordance with regulations, by not sending the Division the daily self-exclusion list, by offering a permanent self exclusion option through its platform, and by permitting self-excluded patrons the opportunity to wager through other platforms,” the DGE wrote in the notice.

N.J.A.C. 13:69C-14.2(b) and N.J.A.C. 13:69C-14.2(c) requires New Jersey gaming license holders to include the phrase “Bet With Your Head, Not Over It” or comparable messaging approved by the DGE in any advertising for their services, as well as include1-800-GAMBLER messaging in promotional materials.

N.J.A.C. 13:69G-2.2 establishes certain procedures for requesting placement on New Jersey’s self-exclusion and internet self-exclusion lists. License holders are required to provide self-exclusion options from one year, five years, to a lifetime. Individuals can self-exclude for one to five-years through an online sports betting platform, but cannot self-exclude for a lifetime online. The DGE requires these customers to do so in person at a location designated by the Division.

Caesars Sportsbook, according to the DGE, incorrectly offered a lifetime self-exclusion through its online sportsbook platform.

Additionally, N.J.A.C. 13:69G-2.3 and N.J.A.C.13:69G-2.4 require license holders to promptly update systems once an individual is placed on a self-exclusion list. Upon receipt of a self-exclusion list, operators must identify self-excluded individuals and prevent them from betting or accessing their betting services, plus close or restrict their gaming accounts.

“Caesars Sportsbook’s errors prevented its system from functioning as intended, and as a result, responsible gaming matters were not identified or acted upon appropriately and in a timely manner, indicating a failure to maintain the safeguards necessary to ensure the integrity and proper functioning of systems,” the DGE wrote in its notice.

Largest New Jersey Online Sports Betting Civil Penalty

The nearly $300,000 civil penalty is the largest civil penalty issued by the New Jersey Division of Gaming Enforcement to an online sports betting operator since the state legalized online sports betting in 2018.

Most civil penalties from the DGE typically land in five-figures for operators, with few ever crossing the six-figure mark. This past October, the DGE fined Digital Gaming Corporation (DGC), which no longer operates online sports betting or iGaming platforms in the U.S., $112,188.96 for multiple self-exclusion and responsible gaming violations of its customers in the state.

The DGE also fined BetMGM $106,000 this past June – with an additional disgorgement of $51,789 – for non-compliance issues related to responsible gaming matters.

A spokesperson for the DGE said the division does not comment on the size or ranking of penalties.

Robert Linnehan
Robert Linnehan

Regulatory Writer and Editor

Robert Linnehan covers all regulatory developments in online gambling and sports betting. He specializes in U.S. sports betting news along with casino regulation news as one of the most trusted sources in the country.

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