New Jersey Gambling Regulator Fines PokerStars for Geolocation Failure

Online poker operator PokerStars had its wrists slapped by the New Jersey Division of Gaming Enforcement for failing to prevent out-of-state customers from gambling on its New Jersey mobile website.

The state gambling regulator has announced recently that it had imposed a $25,000 fine on Canadian gambling group Amaya, the owner of the Rational Group, which, in turn, owns PokerStars. The Division has explained that its decision to sanction the operator came after it had been found out that players from outside New Jersey’s borders had been able to access the online poker website via their mobile devices.

New Jersey is one of three US states to have a legalized and regulated online gaming industry. It was in 2013 when its iGaming law came into effect to open the local market for operators interested to provide online gambling options there, poker included. Several Atlantic City casinos have gone live with gambling websites since then, working together with some of the world’s leading gambling companies.

Under New Jersey’s law, only players located within the state’s borders can access its gaming websites and play for money. Operators are required to deploy effective geolocation systems in order to prevent out-of-state customers from gambling online. Said systems are aimed to detect a player’s exact location and to block attempts for unauthorized access.

Amaya has not been the only gambling company to have been fined by the New Jersey Division of Gaming Enforcement for geolocation failure. Last year, gaming software supplier GAN was imposed a $25,000 fine for activating software that allowed out-of-state players access offering provided by its client Betfair. It was found out that the activation had occurred inadvertently.

PokerStars launched its New Jersey gaming website last March after receiving regulatory approval from the Division of Gaming Enforcement. Being admitted by the local gambling regulator was considered an important development for the poker brand as it was more than shamefully banished from the States for providing real-money services to US players after the implementation of UIGEA.

It can be said that the online card room was off to a good start in New Jersey. It boosted significantly the state’s Internet gambling revenue during its first several months of operations, official date by the local regulator showed.

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