New Jersey Takes on Australia's Online Gambling Problem

Australia has called upon an unlikely partner in its mission to stop online gambling operations within the country: New Jersey. Even more surprising? New Jersey has responded strongly.

The New Jersey Division of Gaming Enforcement (NJDGE) recently came out with a letter warning the state's active online gambling operators not to conduct business in Australia, which New Jersey considers a black market.

How did this strange partnership evolve?

In September of this year, the Australian government started cracking down on online gambling operators, enacting a series of new restrictions meant to chase them out of the country. (And it was fairly successful at doing that). However, there are still a number of online gambling operators that remain, and this is where New Jersey comes in.

After the restrictions were enacted, the Australian Communications and Media Authority’s Acting Chairman, Richard Bean, sent a letter to NJDGE Director David Rebuck, asking for his help deterring online gambling companies from operating in Australia.

New Jersey to the Rescue

New Jersey has been actively involved in preventing online gambling operators who serve in the state from serving in markets in which online gambling laws are not clear, or gray. In fact, in 2016 the NJDGE published an advisory bulletin on the topic.

So when Australia requested help, Rebuck responded. His strongly-worded letter warned the state’s online gambling operators that doing business in Australia could lead to losing their license in New Jersey.

…every online gambling company that conducts business in New Jersey must comply with Australia’s new laws and cease offering all prohibited services to customers in Australia. Failure to do so many result in the Division taking regulatory action against your company, including finding your company unsuitable for licensure in New Jersey.

Rebuck’s threat carries some real weight. As more and more states seek to online gambling, it would certainly hurt any company that was labeled a “bad actor” due to operating in Australia. For now, it seems that the partnership between New Jersey and Australia is one that is beneficial for both sides.