iGambling Offers Higher Level Of Consumer Protection Than Land Casinos

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Thursday, February 11th, 2016 | Written by Shane Larson

One of the most common arguments waged against online gambling legalization by casino moguls like Sheldon Adelson (photo) is that websites will inadvertently allow underage people to play at their virtual tables. Actual data out of New Jersey, however, shows that these claims are not grounded in reality. Since online gambling was legalized in the Garden State back in 2013, the iGaming industry has complied with regulations that require them to keep underage players from accessing the games. In fact, the only reported violations have related to marketing campaigns that failed to comply with the self-exclusion rolls enlisted for by a number of New Jersey residents.

Fines for Marketing Practices

Under New Jersey iGaming law, residents have the right to have their name added to a sort of no-call list for casino marketing. People on this list are not to be contacted with any type of promotions concerning online poker and other forms of gambling. Since the legalization of iGaming, just one operator has been hit with fines for failing to use the self-exclusion list. In November 2014, Caesars was fined $10,000 for sending marketing materials to 250 people who should not have received them, and in 2015 received a second $15,000 fine for a similar breech of the law.

Operators Complying with NJ Regulations

Apart from Caesars fines, the iGaming industry has done a good job of adhering to the state’s regulations. Since the legalization of online gaming, there have been no instances of:

– Underage gambling on any site that is licensed by the state
– Players who have self-excluded being able to access an iGaming site
– People outside of New Jersey gaining access to an online gambling site

The only other fines that have been slapped on operators was a $15,000 penalty that bwin.party was forced to pay when it did not meet the terms of a divestiture agreement.

Land Casinos Prove More Problematic

Although New Jersey’s online gambling operators seem to be striving to adhere to state laws, brick and mortar casinos in the state have been cited for violations like allowing underage gambling, underage drinking and gambling by self-excluded individuals on their premises. Outside of New Jersey, land-based casinos have also been fined many times for not adhering to regulations intended to prevent underage gambling and drinking. Even the Sheldon Adelson owned Sands Bethlehem Casino in Pennsylvania, and similar operations such as the Palazzo and the Venetian in Las Vegas have been fined numerous times for noncompliance.

Black is White, and Day is Night

Needless to say, the data so far indicates that the anti-online gambling arguments proposed by casino owners such as Adelson are opposite to the actual truth, and are hypocritical at best. An example of Adelson’s flawed logic is demonstrated in an interview a few years back when he explained:

“The possibility of underage children finding ways to place online wagers and the possibility of people betting under the influence of drugs or being coerced are all scenarios that can happen when the person is only monitored by their own computer screen. On the other hand, when a person makes an effort to get dressed, join some friends and head to the local casino for a night of entertainment, they must show themselves as adults, and their behavior can be observed and ultimately managed by security and other staff if needed.”

Fortunately, few people have been taken in by the views of a gambling billionaire seen as more interested in protecting his business interests, rather than the consumer rights of gamblers. Even California Internet and interactive gaming attorney Martin D. Owens felt compelled to weigh in on the issue, and called Adelson’s concerns as preposterous, while denouncing his stance as “an unimaginative rear-guard action.”

Risk Still Exists

So far, it’s evident that the safeguards that New Jersey online casino operators have put into place are effective at keeping those who should not be accessing gambling sites away from the virtual tables. That’s not to say that the security is foolproof. It could still be possible for someone tech savvy to get around the security features; however, when you compare the compliance of online casinos with that of land-based casinos, it becomes clear that those who argue that online gambling is a less secure environment obviously do not have the facts on their side.