License Process and Set Up for Starting an Online Casino in New JerseySince 2013, land-based casinos could legally partner with an iGaming partner to provide online gambling services to players within the borders of the Garden State. Through this article, you’ll understand the application process thoroughly, making it easier to meet the requirements according to the DGE, alongside knowing which forms you must submit.
Fast Facts about the License Process and Set-up for an Online Casino in NJ:
|Organization regulating online gambling licenses in NJ:||New Jersey Division of Gaming Enforcement|
|How often the license should be renewed:||Annually|
|What requirements should someone meet to request a gambling license:||Must be a USA-registered companyHave a partnership with a physical casinoSelect a co-location or hosting providerComplete the Personal History Disclosure Form 1 – Casino Qualifiers, or the Multi-Jurisdictional Personal History Disclosure Form AND the New Jersey Supplement.|
|Different gambling licenses that exist:||Operator, Vendor, Service Provider, Employee (1)|
|Where to submit the security-related filings:||firstname.lastname@example.org|
How much money does a gambling license cost in New Jersey?
A minimum of $200,000.00. (2)
Do I have to be a New Jersey resident to apply for a gambling license in this state?
No, but your business must be registered in the county to pay the relevant taxes.
What does a “transactional waiver” mean?
It’s a temporary license for operating before opening the online casino to the public without any restrictions. The waiver allows you to run for a selected number of players for a certain number of hours in a day in what we know as a soft launch. During this time, regulators will scrutinize the operation to ensure they meet the regulations.
How long does the process for obtaining a gambling license in NJ take?
Usually, it takes 90 days. (3)
From the License Request to the Final Approval - All you need to know
The license application process is complex and requires considerable diligence on the part of the investor. To avoid delays in obtaining the license, you must have all the documents and information ready.
We’ll walk you through the steps below to keep in mind when you’re applying for a casino license.
How to plan your casino business - The Set Up
The world of business is already complicated. When you factor in licenses and fees that you must pay to obtain a legal permit to operate within the state, it can be stressful. Ultimately, you need the business to succeed and deliver a decent profit. These are some points you must consider when applying for an online casino license in New Jersey.
1. Market research
Gambling is legal in 25 US states, but the laws and regulations differ in every state. It’s essential for you to evaluate the market you’re about to enter to see if there is growth potential. Identifying a state’s performance may be crucial in determining your revenue projection.
2. What are the New Jersey regulations?
Before entering the market, you must be familiar with the regulations so you can be compliant. See our resources section at the end of this guide for further reading.
3. What are the “skin classifications” you can apply for?
You can apply for the platform to be an online version of a casino or a sportsbook with a particular available skin or brand that’s available within the state.
4. Who are your competitors?
Operators who have grabbed other available skins are your direct competition. As a result, they drive up the price of the skins you can select from. You can see our full list of legal NJ online casino sites in our list here.
5. Types of licenses - which one is the most convenient?
There are a few types of licenses on offer, including one for a Vendor, Service Provider, and Employee. However, when you’re investing in an online casino, you need the Operator's License. We at JustGamblers who provide marketing services have a vendor registration.
6. Fees & Taxes
You should pay up to $200,000 for a license which could rise if there aren’t many skins available. Online casinos are liable for 15% tax on their casino betting income and 13% tax on sports betting revenue.
7. Infrastructure & Hosting
These are the elements that make your casino a success. It’s worth investing in the best infrastructure either from an internal perspective or a third party. However, you need the games to operate smoothly to provide a seamless experience for players. Worth to know is that your servers need to be placed in New Jersey.
How to start your casino business - The Action Plan
When you’re ready to start the journey into online casino ownership in New Jersey, these are the crucial steps you must remember and can’t neglect.
Registering your company
Regardless of where you’re from, you must register your company in the United States. Following this process ensures that you will pay tax in this country. While the tax levels differ per state, in New Jersey, online casinos must pay 15% tax on gambling while 13% should come from sports betting income.
Agreements between casinos and operators
If you want to operate here, you must enter into an agreement with a brick-and-mortar casino to obtain a license. If you’re a vendor or supplier, you’ll need a letter of intent to partner with a casino, indicating the need for the license.
Selecting a hosting provider
For the application to be successful, you must nominate and agree to hosting terms with a licensed provider that already exists in the state.
Sending your application
After gathering your documents, you can submit the application to the Division of Gaming Enforcement. (4)
Send two physical copies to:
Division of Gaming Enforcement
1300 Atlantic Avenue
Atlantic City, New Jersey
If you are from out of state - your fingerprint is needed
If you’re from out of the state or country, it’s essential to complete your fingerprinting cards. You can visit the Division’s office in Atlantic City to register your fingerprints. Alternatively, you can do it at a police station along with the Applicant Identification Verification Form. You’d also need three New Jersey fingerprint cards that you can obtain from the Division.
Fill out the form and submit it to complete this step. (5)
Other Details to be Aware Of
Personal information needed - Should I present any?
You will need to fill out the personal history disclosure forms.
Casino software - do they meet the jurisdiction requirements?
The software providers must provide legitimate games that are fair. The Division will evaluate every casino game to enforce this and protect the game’s integrity. The Technical Services Bureau ensures that the games pay out at least 83%.
Transactional waiver - what is this?
The waiver is similar to a temporary permit that allows the casino to operate within restricted hours and to a minor audience to test its operations. During this time, the regulators will observe and note any discrepancies.
Forms you need to submit
Some of the forms that you’d require to submit for your application include:
- Multi-Jurisdictional Personal History Disclosure Form
- New Jersey Supplemental Form to the Multi-Jurisdictional Personal History Disclosure Form – Casino Qualifiers and Casino Key Employee Qualifiers
- Personal History Disclosure Form 1 – Casino Qualifiers
- Initial Internet Gaming Permit Application. (6)
How many types of gambling licenses exist in NJ?
Several types of gambling licenses are available in the state of New Jersey. These are some of the more common ones
- Casino Service Industry
- Ancillary Casino Service Industry
- Vendor Registration
- Employee License
Takeaway on License Process and Set Up for Starting an Online Casino in NJ
If you’re keen on investing in an online casino across the Garden State, there are specific regulations and procedures you must follow. As a result, the Division of Gaming Enforcement can legitimize your operation by issuing a license for a year.
There are certain fees you must pay and a heap of information you need to submit as part of your application. Bear in mind that the business must be a USA-registered operation and meet its tax obligations within the state.
Resources & Sources
- The Essential Guide for Expansion in the US (pages 22-25), Internet Vikings, accessed on July 19, <https://internetvikings.com/igaming-and-sports-betting-future/>
- Casino Licensing, State of New Jersey Casino Control Commission, accessed on July 19, <https://www.nj.gov/casinos/home/faq/>
- Transition Information, Department of Law and Public Safety, accessed on July 19, <https://www.state.nj.us/oag/ge/licensesregistrations_faq_transition.html>
- Casino Licensing, New Jersey Office of the Attorney General, accessed on July 19, <https://www.njoag.gov/about/divisions-and-offices/division-of-gaming-enforcement-home/casino-licensing/>
- Identification Unit, State of New Jersey, accessed on July 19, <https://www.nj.gov/oag/ge/docs/Forms/75-ID%20Fingerprint%20Process%20Form.pdf>
- Forms, Division of Gaming Enforcement, accessed on July 19, <https://www.njoag.gov/about/divisions-and-offices/division-of-gaming-enforcement-home/forms/>