Read more about online gambling in NJ
On this page, you can read all about NJ online gambling:
Bojoko helps you understand how online gambling works in New Jersey. New Jersey licenses the biggest selection of online gambling sites in the US. On NJ online gambling sites, you can access all types of games of chance, 100% legally.
On this page, we explain everything you need to know about gambling laws, the licensing system, and legal online gambling sites in New Jersey.
Here's a list of all New Jersey gambling sites listed on Bojoko. All the sites presented at Bojoko are fully licensed and safe places to gamble online.
On this page, you can read all about NJ online gambling:
We want to make online gambling more transparent and easier to consume. For several years, Bojoko has helped players in the UK and Canada compare gambling sites. Now we want to do the same for players in New Jersey.
Here's how we help you make more educated gambling decisions:
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The legal minimum gambling age in New Jersey is 21. If you're younger than that, you can't gamble in NJ.
New Jersey legalized Internet gambling in 2013. It was the third state in the United States to do so, right after Nevada and Delaware. The current legislation can be found in the New Jersey Casino Control Act of 2013.
In addition to land-based gambling venues, the state of New Jersey allows the following types of online gambling websites:
We take a closer look at NJ online casino gambling websites on a dedicated page.
In New Jersey, online gambling goes hand-in-hand with brick-and-mortar operations. Internet gaming licenses are only given to companies that already run a land-based gambling operation in the state. Gambling operators entering the market must partner up with local firms that meet these terms.
Online gambling servers must be inside the licensed brick-and-mortar casinos in Atlantic City. This is mentioned in the Casino Control Act.
NJ Online gambling websites must also verify that the players are physically in New Jersey when they play. This is done via GPS: either using a separate GeoGuard app or a built-in location tracking in the casino's own app.
All gambling in New Jersey falls under the jurisdiction of the Division of Gaming Enforcement (DGE). This government body has been around since 1977 when the first land-based casinos were opening up in Atlantic City.
DGE is responsible for:
DGE does the groundwork for license application investigation. However, the actual licenses are granted by the New Jersey Casino Control Commission (CCC). Casino companies must obtain a license to operate in the state. In addition, key personnel (starting from managers and supervisors) must be licensed too.
A license is only granted to people and companies that "meet the statutory requirements of good character, honesty, and integrity and to keep the New Jersey casino industry free from organized crime."
Taxation of gambling winnings in New Jersey is somewhat complicated. Here's what makes it so messy:
There are no maximum tax-free winnings.
The exception is the NJ state lottery. The tax that applies is the state gross income tax, and the exact rate varies between sums won:
If you don't provide a Taxpayer Identification Number (TIN), all lottery winnings exceeding $10,000 are taxed at 8%.
In addition to the state tax, you may also need to pay a federal gambling tax on your winnings. Small wins are tax-free. However, casinos need to report bigger wins to the IRS.
Each type of gambling has a different minimum threshold for reported winnings:
Here's the difference between gross and net winnings:
If your winnings exceed these thresholds, the casino will file the Form W2-G to the IRS. The gambling facility should also withhold a percentage of your winnings to cover the federal gambling tax.
You can find Form W2-G and other useful information on the IRS website.
You must report your gambling winnings in your tax return. The upside is, you can also deduct your gambling losses from these winnings. Keep track of your deposits and withdrawals so you have everything ready for filling out your tax return.
EXAMPLE: You win $2,000 from an online slot. During the year, you've lost $1,500. You pay the federal tax only for the $500 of net winnings.
New Jersey has over 40 uninterrupted years of experience in legal gambling. Starting in the mid-1978s, the state opened its doors to legal, regulated gambling on the East Coast.
Starting in 2013, online gambling has also been legal in the Garden State. This is part of a long continuum of the state's pragmatic attitude towards gambling.
New Jersey saw different forms of legal gambling in the 18th and 19th centuries, including lotteries and horse racing. Towards the end of the 1800s, different forms of gambling were outlawed one by one. An 1897 referendum sealed the deal and banned all commercial gambling in New Jersey.
Although gambling was officially banned, this didn't really slow down things in Atlantic City. During the prohibition era, Atlantic City earned a reputation for relaxed enforcement of alcohol and gambling laws. Under the direct and indirect management of crime bosses such as Enoch "Nookie" Johnson, the city was dubbed "The World's Playground".
Gambling restrictions eased from 1939 onwards, starting with the re-legalization of racetrack gambling. During the next decades, the state's gambling laws became more liberal. New Jersey legalized non-profit bingos and raffles, lifted the ban of amusement games, and created the state lottery.
The biggest hallmark of New Jersey's 20th-century gambling legislation was the 1976 referendum legalizing casinos in Atlantic City. Whereas Nevada used to be the only state with legal casinos, the new law brought another player to the table.
The new, legal Atlantic City casinos achieved two things. They provided an East Coast alternative to Las Vegas gambling tourism. In addition, the new law helped stamp out illegal gambling operations in and around the state. That enabled the Garden State to reap the benefits of gambling, instead of being left with its problems.
Casinos revitalized Atlantic City and started a huge construction boom during the 1980s. Many of the new casinos being opened were owned by the household names of Las Vegas. Many East Coast property developers also tried their hand in the gaming industry.
Serious discussion about the legalization of online gambling in New Jersey started in the late 2000s. By 2011, the state legislature was ready to pass a bill to allow legal online gambling in the state, but Governor Chris Christie vetoed it. Christie was worried that accessing casino games anywhere within the state would make cafes and nightclubs gambling hubs.
An amended version was signed into law in February 2013. The New Jersey Casino Control Act made online gambling legal for a trial period of 10 years.
The law cemented the ties between online gambling and the established brick-and-mortar casinos. The law requires online casinos to have gambling servers inside Atlantic City casinos. This ensures that only trustworthy companies with a long history in the industry can offer games of chance in New Jersey.
At the same time, the server location rule erected a huge barrier to entry in the legal online gaming industry. This benefits the existing casinos enormously. If a company aspiring to launch an online gambling site in New Jersey can't secure a partnership with one of the incumbents, it can't access the legal gambling market.
Legal NJ internet gambling sites must provide responsible gambling tools. These include deposit limits, time limits, and temporary self-exclusion.
Gambling sites must prominently display the text "If you or someone you know has a gambling problem and wants help, call 1-800 GAMBLER."
The state aims to channel all gambling to licensed operators to protect players and maximize tax revenue. In New Jersey, offering online gambling without a license may result in a fine of up to $100,000 for the operator.
On our responsible gambling page, you can find details about responsibility tools. We also list contact info of organizations specializing in helping problem gamblers.
The minimum legal age for gambling in New Jersey is 21.
New Jersey state tax rate for online gambling winnings is 3%.
In addition, you need to pay federal gambling tax for big winnings.
The state gambling regulator in New Jersey is the Division of Gaming Enforcement (DGE). The New Jersey Casino Control Commission (CCC) is in charge of granting the actual gaming licenses.
Read more about NJ gambling regulators.