New Jersey Obligates Sportsbook to Use 2FA and MFA

New Jersey is a pioneer when it comes to sports and casino gambling. The Garden State was among the first to set up online gambling and it spearheaded the repeal of PASPA. Now, the state continues to innovate as consumers will get another protective measure inscribed in local laws with the blessing of the New Jersey Division of Gaming Enforcement.

Bringing More Security to Sportsbooks in New Jersey

As a result, all sportsbooks based in Garden State would need to comply with ordinance N.J.A.C. 13:690-1.1 which demands the implementation of a Two-Factor or Multi-Factor Authentication system. The idea is to ensure that consumers are protected and that their accounts are solely accessible to them and nobody else.

DGE believes that by raising the security standards, hackers will have a difficult time gaining control over sportsbook accounts and misusing them or withdrawing funds. The regulator expects sportsbooks to implement these measures as an additional precaution against fraudulent activities.

The implementation of these safeguards will ensure that customers have an additional layer of protection to navigate the world of sports betting in the most secure way possible. The authentication process will involve a password, pattern, or question. Another solution will be the use of a physical token, electronic token, or an identification card which is used to establish the identity of the customer, and which will apply to more sizable transactions.

Biometric data scans such as facial, voice, or fingerprint recognition may also be necessary. Of course, the more secure a platform becomes, the more it slows down player acquisition as some consumers may prefer to not have to deal with these seemingly minor disturbances. The good news is that DGE will obligate every property on the territory of New Jersey to comply.

Player Safety Improved, Player Acquisition May Take a Hit

Sportsbooks also seem to be prepared to take up on this. Some, such as DraftKings and its rival FanDuel, have already confirmed that they have implemented 2FA in anticipation of more rigorous standards. They are planning to do so elsewhere as they cite consumer safety as their most precious aspect of the offer.

No other state has gone as far as to introduce MFA or 2FA right now, which is mostly because New Jersey is ahead of the pack in terms of how much time it has had to regulate its industry. This should be changing fairly soon.

1 Comment

  • Michael Tanaka
    June 9, 2022 at 5:54 pm

    Passwordless MFA such as MIRACL would be ideal in these situations. Obviously friction is the primary enemy so using tech which reduces that friction but increases security would be ideal.

    Full disclosure – I work for MIRACL

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