New Jersey Bill Addresses Funds in Inactive Online Gambling Accounts – Five Reasons Sports Network

Two bipartisan bills (S152 and A397) have been introduced by New Jersey lawmakers that deal with the subject of inactive online gambling accounts. What happens to money that remains unclaimed from such accounts? If the bill becomes law, then the funds could head in the direction of New Jersey’s unclaimed property program.

This would be the case but not until after a three year period has elapsed. The legislation has been introduced by Assemblymen Robert Auth and Joe Danielson. It has also received additional sponsorship from Assemblymen John DiMaio and Sean Kean.

It has been introduced at a time when the online gambling industry in New Jersey continues to grow.  However, the question is what happens to the funds that are in  accounts that remain unused for long periods of time.

It may well be that the account holder has decided to cease gambling. More likely, they have decided to join another online site but perhaps forgotten that they still have another account that still has some funds remaining in it.

The bill doesn’t want to see these unused funds simply remain there. Instead, they’d be reclassified as unclaimed property and that would bring the ‘Uniform Unclaimed Property Act’ into play.

If the new bill were to become law, online gaming operators in New Jersey would have to make an attempt to resolve the situation regarding inactive accounts. This would entail them having to try and contact those who have either inactive or self-excluded accounts. 

Either an email, phone call or letter would have to be sent. This would encourage them to withdraw the amount that remains in their account. If it is not possible to contact the users or they decide not to take any action, the funds in their accounts would after three years of inactivity then be transferred to New Jersey’s unclaimed property program.

At present, funds in inactive accounts are split between the New Jersey Casino Control Fund and the online operator. This would change and the operator would not be able to claim half of the funds. 

By doing this, the funds will be accessible and safeguarded in a centralized state system. Accountability will be enhanced and those who may have forgotten about funds in their accounts have an improved chance of retrieving their money.

Whether the bill will become law remains to be seen. It is also likely that during legislative discussions of its contents, there may be amendments or additional provisions made.

This is not the first time that the subject of unclaimed balances of online gambling accounts has been discussed. 2022 saw the issue discussed and both of the current bills were introduced in January of this year and discussed by the committees in the Senate and Assembly. However, neither were ever voted on.

With online sports betting and casino gaming now reaching record levels, interest in the subject has been revitalised. It also has the aim of increasing the overall responsibility of online operators to try as hard as they can to ensure the rightful owners receive their lost funds.

No votes have been scheduled for either of the two bills. If sufficient support for them is received, then hearings and possibly voting could take place in early 2025.

It’s been a massive year for the online sports betting industry in New Jersey. Total handle in the state has already gone through the $10 billion mark. Over $56 billion worth of bets have been taken since online sports betting was made legal in New Jersey six years ago following a US Supreme Court Judge ruling.

Revenue for the first ten months of this year was $193 million which is 13.9% higher than for the same period last year. The final two months of the year are expected to be very busy and then the start of the new year will be the countdown to the Super Bowl.

October saw the revenue earned by online casinos in New Jersey beat that recorded by land-based casinos in Atlantic City. The figure for online casinos was $213.6 million, just ahead of the $208.7 million recorded by the Atlantic City casinos.

Online casinos saw a growth in popularity during the COVID-19 pandemic. That caused land-based casinos to be temporarily closed. Since the pandemic ended, revenue figures for Atlantic City’s casinos have gradually been increasing. 

However, for the first ten months of 2024, brick-and-mortar casino revenue has fallen by 1.6%. That’s compared to an increase of nearly 8% for online casinos that continue to be hugely popular with players.