Last updated on August 3rd, 2022

Laws and Regulations

Jack Holiday Jack Holiday
January 14, 2021
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Croupier behind gambling table in a casino

Every country has its own laws and regulations when it comes to gambling activities. With the advent of online gambling websites, things can get trickier to navigate as players may be unsure what exactly is legal. In this guide, we give you an overview of the laws and regulations policing online gambling activities in the United States.

Who is Eligible to Play at NJ Online Casinos?

  • You must be at least 21 years of age or above to gamble in New Jersey.
  • You should be physically inside New Jersey, Pennsylvania, Delaware, Nevada, Mississippi, or West Virginia.
  • Non-NJ residents can play.

Understanding the Unlawful Internet Gambling Enforcement Act (UIEGA)

Enforced in 2006, the UIEGA regulates several aspects of online gambling. The main reason for passing the UIEGA was to prevent businesses from accepting transactions from online wagers if to do so would go against state and federal law.

Below is a key summary of the main points highlighted in each section of the UIEGA:

  • Section 5361: This section acknowledges the difficulty of enforcing laws when it comes to betting that takes place across borders. In addition, it states that online gambling can cause problems for banks and credit card companies. However, we have to remember when the UIEGA was passed and that the Internet has come a long way since then.
  • Section 5362: The next section is concerned with definitions. A bet or wager is defined as putting something of value at risk on the outcome of a sports event, game or contest that is subject to chance. The term “subject to chance” was included to target online poker.
  • Section 5363: This section focuses on money transfers, specifically when it comes to accepting money for gambling activities by businesses. It puts all the responsibility on gambling sites, stating that players and financial institutions involved in the transactions cannot be charged.
  • Section 5364: Section 5364 is concerned with the identification and blocking of transactions to gambling sites by payment systems. It requires all involved parties of a designated payment system to block transactions that are restricted by law. An exception would be paper checks as banks are not able to automatically identify payees simply by looking at these checks.  
  • Section 5365: This section allows authorities to bring forward suits to obtain temporary restraining orders and more against restricted transactions. While Section 5365 was passed to attempt action against companies that are located outside the country, they have proven to be impossible to regulate under American law.
  • Section 5366: The penalties for offenders are listed in this section and include fines, up to five years’ jailtime and being barred from gambling activities.

When participating in gambling activities, it is important to always keep on the right side of the law and practice caution. If you suspect that a site is engaging in illegal activity, cease all activity on it immediately.

Jack Holiday
Author Jack Holiday

Jack Holiday is our resident online gambling expert and is responsible for the high quality content you’ll find here at gambling-newjersey.com. John is a man of many talents and casts his expert eye on a variety of online gambling products in the state of New Jersey including online casino, sportsbook and poker. From his articles, you’ll find all of the latest online gambling news as well as new casino game releases, sports betting previews and even the best poker strategies. If you’re new to online gambling, or if you just need a helping hand, then John is your man.