Getting a Casino License in New Jersey – What’s Required?

January 23, 2021

Now that online gaming and sports betting is legal in the state of New Jersey, a myriad of businesses are looking to join the bandwagon. However, the procedures put in place entail that any establishment looking to offer online gambling be associated with a land-based casino in New Jersey, just as SugarHouse Online Casino is connected to Golden Nugget. This kind of association requires a specific legal status without which the online casino wouldn’t operate.

Companies that seek to do business with a New Jersey casino need to have either vendor registration or a license. However, this will depend on the type of relationship and service they plan to provide. The term ‘doing business’ can be broad. Therefore, it’s applicable to enterprises that want to get a license for online sports betting license as well as those that offer any services related to gaming directly or indirectly.

Companies providing support to online gaming and sports betting are all required to either obtain a registration from the state or license for them to be allowed to work with a casino in New Jersey. These include internet hosts, advertising agencies, game developers, and payment processors. The state has a unique approach to online gambling because it has put in place DGE, a robust regulatory regime to monitor its gambling industry, which is legal and heavily regulated.

The state of New Jersey’s internet gaming law recognizes three categories of companies providing services to casinos. They are:

  1. Companies providing services to the casino that are not explicitly designed for gaming nor related to it, these are only required to register as vendors.
  2. Businesses offering direct services that are related to the operation of the gaming activity of a casino. These are required to obtain a casino service industry enterprise license (a CSIE).
  3. Entities providing services that are supplementary to the casino’s gaming activity, these are required to obtain both CSIE and ACSIE (an ancillary CSIE license) licenses.

For a company to obtain a legal online gaming license, it has to pursue a two-fold procedure of securing a commercial contract with a land-based casino. The company also needs to complete a rigorous process of game testing and financial disclosure.

A casino seeking to obtain a license is required to pay $100,000 deposit, this fee is non-refundable. If the casino is approved, part of the deposit will go towards their gaming license which costs $400,000. The casino will also be required to pay a $250,000 annual renewal fee each year. This money goes to the mandatory gambling programs in New Jersey. Additionally, iGaming operators are required to pay a 15% tax rate on their gaming revenue as well as 2.5% to the Casino Reinvestment Development Authority.