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Gambling laws across the US are changing rapidly. As states realize the lucrative revenue streams of the online iGaming industry, many are repealing state laws to allow this form of entertainment into their borders. Below, we discuss the history of gambling laws in New Jersey.

Online Gambling

The state was way ahead in its adoption of online gambling laws and ensuring that those who partook in it were safe and used reputable sources. Its first bill passed in 2011, stating that New Jersey residents who were over the age of 21 could place bets online.

This was followed by lengthy legal proceedings discussing how and where bets took place. Mainly, they focused on where the bet was made. Did the bet originate from the computer terminal where it was placed, or at the server where it was processed?

Without these early wranglings and discussions, it is doubtful that the online gambling industry we know today would have been able to progress. You only need to look at ranking sites such as Casino Smash and see how many online casinos now exist. Housed across states and offshores, the legal framework for online slots, table games, and live casinos would have been lacking.

Further acts also brought in the use of location services to determine if a player was in New Jersey themselves when placing bets and online gambling. All online bookmakers and casinos opened in 2013 with a synchronized launch across multiple platforms. 

Early Gambling Legislations

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This forward-thinking attitude to gambling has been in the state for a long time. Using gambling to finance public projects and infrastructure was used as far back as 1766. Queens College, now Rutgers University, was partly funded using a lottery. However, in 1844 running lotteries became banned. It was just before this in the 1830s that the first racecourse in the US, Freehold Raceway, finished construction. However, by 1897 all gambling had been outlawed in the state.

Over the next 70 years, these laws would slowly change. At first, they existed in a grey area, where even churches would hold informal but illegal lotteries to raise money. Racetrack gambling eventually became legal and even a state lottery was introduced. However, it was the arrival of the first casino in 1978 that changed the landscape.

Resorts Atlantic City

Resorts Atlantic City was the only casino outside of Nevada when it opened. It stood on the site of the old Chalfonte-Haddon Hall complex. At its opening, it was only allowed to operate for certain periods, which were 20 hours at the weekend and 18 hours during the week. Of course, this led to a huge interest in the attraction, with long queues and waiting times to enter. While hugely popular upon opening, over time other casinos arrived and the popularity and revenue of the casino waned. With little in the way of upgrades, it could not compete with new, modern-looking buildings and attractions.

Where New Jersey will head next with gambling legislation remains to be seen. The online industry is flourishing, in part to the state and its work. Could New Jersey hold the key to unlocking the potential of new arenas such as the metaverse for gambling purposes or even go beyond?