INSIGHT
NJDGE: LAST CHANCE FOR
AFFILIATE COMPLIANCE
While the NJDGE’s recent Advisory Bulletin regarding affiliates takes a softer stance than last year’s
cease-and-desist letter, those serious about the market now have until November to make any necessary
changes, writes Rachel Hirsch of Ifrah Law.
IN JUNE, DAVID REBUCK, Director
of the New Jersey Division of Gaming
Enforcement (DGE), issued an Advisory
Bulletin (“Bulletin”) regarding online
gambling affiliate marketers. This clarifies
the Division’s stance on affiliates who
have marketed unlicensed gaming sites
to New Jersey (NJ) residents and sets a
150-day clock for affiliate marketers who
now work with NJ-licensed operators,
or who wish to do so in the future, to
comply with all applicable state and federal
gambling regulations. The Bulletin follows
last year’s cease-and-desist letter sent by
NJ’s Assistant Attorney General George
Rover to six affiliates, demanding they
immediately remove any online gaming
links that are not authorized under federal
or state law under threat of civil and
criminal sanctions. While last year’s letter
adopted a more rigid approach of “comply
now or face immediate enforcement,”
this year’s Bulletin demonstrates a more
softened stance toward affiliates of
“deferred enforcement” following a sizable
grace period.
The 150-day grace period
The Bulletin, entitled, “Internet Gaming
Affiliates/Marketing on Behalf of Illegal Online
Gaming Sites,” signals a new “deferment
on enforcement” approach taken by the
DGE – in essence, a last chance for affiliate
compliance. Director Rebuck stated in the
Bulletin that the state will not take legal
action against affiliates who promoted
illegal sites after the regulated NJ online
gambling market began in November 2013,
so long as they cease promoting unlicensed
sites within 150 days of the issuance of the
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iGB Affiliate Issue 52 AUG/SEP 2015
Bulletin. Specifically, the Director addresses
in the Bulletin:
(1) W
hether affiliates who have promoted
or marketing illegal online gaming sites
since the adoption of online gaming
in New Jersey would be subject to
enforcement action by the Division if
they cease such activity; and
(2) W
hether such prior conduct would
result in a finding of unsuitability
if affiliates apply to the NJDGE for
licensure.
As to the first issue, the bulletin started a
compliance clock set for 150 da \