iGB North America magazine IGBNA Aug/Sep | Page 12
Law and Legislation
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 Bulletin.
Specifically, the Director addresses in
the Bulletin:
(1) Whether 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) Whether 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 days, which
be