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New Jersey Lawmakers Considering Changes to Inactive Gambling Account Laws

Ziv Chen

Last Updated: November 27, 2024 3:15 PM EST • 2 min 2 sec read.

New Jersey Devils center Nico Hischier celebrates his goal as we look at prospective changes to inactive gambling accounts in New Jersey.
New Jersey Devils center Nico Hischier celebrates his goal against the Nashville Predators during the second period at Prudential Center. Photo by Ed Mulholland / Imagn Images.

Our best sports betting sites have to deal with different laws in nearly every state they operate in, and now some changes may be coming to one of the biggest gambling markets in the nation.

Assemblymen Robert Auth and Joe Danielsen have sponsored a bill to change how inactive New Jersey sports betting and NJ online casino accounts are treated. The new regulation would require casinos to treat funds in inactive accounts as unclaimed property under the Uniform Unclaimed Property Act, forcing these operators to contact the holder via mail, email, and phone before closing the account. This will allow account holders to claim any funds. 

Unclaimed funds are split evenly between the casino licensee and the New Jersey Casino Control Fund. A397 has been referred to the Assembly Tourism, Gaming, and the Arts Committee.

Active NJ Sports Betting Accounts Providing Plenty of Interest

While lawmakers debate inactive gaming accounts, there has been plenty of attention on active betting accounts in the state. The NJ sports betting handle ticked over $1 billion for the first time since April in September, with sportsbooks managing an 11% hold. 

Sports betting in Garden State has provided pretty strong numbers in 2024, with sportsbooks hitting a year-high 12.3% hold in July. These numbers led to significant year-on-year growth in revenues and taxes. They made NJ the second US state to surpass $4 billion in revenues since the US Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA). New Jersey sports betting apps have remained busy throughout the NFL season.

However, this wasn’t the only month New Jersey sportsbooks posted growth year-on-year. In May 2024, the sports betting handle may have fallen under $1 billion for the first time since August 2023, but the $838.9 million was still a 7.7% increase year-on-year. 

Several market changes in 2024, including the launch of Prime Sportsbook in April, have boosted sports betting numbers in New Jersey.

However, online sports betting revenue dropped by almost 32% month-on-month in October 2024. This reflected a US-wide trend of lower sports betting revenues in October, with markets like Michigan sports betting, North Carolina sports betting, and Louisiana sports betting. In many US states, revenues dropped significantly month-on-month, like in NJ, even though sports betting handles increased with the return of major league sports like the NBA and NHL.

Other New Jersey Gaming Regulations Changes

The proposal to change the status of inactive gaming accounts is the only new rule proposed by NJ lawmakers. The New Jersey State Athletic Control Board recently introduced new sports betting policies around combat sports following the Mike Tyson and Jake Paul fight. Many fans have accused the fight of having a predetermined outcome, which Paul has denied. New Jersey players could bet on the fight.

The new rules clarify that promoters and participants can’t bet on combat sports. Additionally, integrity regulations were clarified, including what restrictions applied to those with inside information on fights. Paul famously took a $40 million bet with a fellow boxer before the fight.

New Jersey State Athletic Control Board Commissioner Larry Hazzard Sr. commented, “With this action, we are safeguarding the integrity of combative sports events. By implementing these standards, we are sending a clear message that unethical behavior will not be tolerated in New Jersey’s combative sports industry.”

Written By:
Ziv Chen
Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.