NJ Proposes Seizing Funds from Unused Online Gambling Accounts

A new proposal in New Jersey seeks to enhance accountability and transparency when it comes to seizing money from inactive online gambling accounts.

Unclaimed Funds from Dormant Gambling Accounts May Be Seized

The bill which reportedly enjoys bipartisan support among lawmakers in the state, plans to implement changes to the way funds from dormant iGaming accounts are handled. Per the proposal, unclaimed funds can benefit New Jersey’s unclaimed property program, after a specifically outlined period is passed.

As announced in a report from Shore News Network, the proposal is sponsored by Assemblymen Joe Danielsen, as well as Robert Auth. In addition, Assemblymen Sean Kean and John DiMaio, co-sponsor the new proposal that if signed into law would enable the state to collect funds from dormant online gambling accounts if left unclaimed by their rightful owners.

Recently, New Jersey recorded an increase in online gambling revenue which effectively surpassed the land-based gambling sector. Figures released by the state gambling regulator, the New Jersey Division of Gaming Enforcement reveal that the iGaming sector reported $213.6 million in revenue last month. While this figure broke September’s iGaming revenue record of $208 million, it also overshadowed the overall revenue reported by casinos in October which halted at $208.7 million.

iGaming Licensees Will Contact Customers with Inactive Accounts

In the context of the constantly growing popularity of online gambling across New Jersey, the new proposal is undoubtedly going to bring changes, hopefully for the better. Per the bill, iGaming operators would be required to attempt to contact consumers with accounts that are seen as dormant or have self-excluded.

Once the customer is contacted via mail, e-mail and phone, they would be encouraged to withdraw their funds. In the cases where customers refuse to withdraw their funds or cannot be reached, the unclaimed money would be transferred to New Jersey’s unclaimed property program. However, in order for that to happen, a period of three years must pass since the last time the player account was active.

Besides benefitting the state’s unclaimed property program, the initiative plans to enhance the accountability withing the burgeoning online gambling vertical. At the same time, the holders of dormant accounts will have a better chance of collecting their funds even if they have forgotten about them.

While the bill seeks to deliver positive change, the decision of whether or not it will gain further traction remains in the hands of lawmakers. It is unclear if further provisions will be attached to the proposal.