Cover image for JustGamblers’ industry news update for December 2024

Lawmakers in New Jersey are arguing that the punishment for underage gambling doesn’t fit the crime, and Democratic representatives are trying to eliminate US election betting. I’ll examine that and other exciting news items relevant to players, bettors, and industry professionals.

TLDR: a Bite-sized Overview:

  1. A new bill in NJ wants to change underage gambling from a disorderly persons offense to a civil offense. Persons caught aiding or committing underage gambling would be subject to fines on a scale from $500 to $2,000.
  2. Democratic representatives aim to regulate election betting through the Commodity Exchange Act. After the CFTC failed to ban election betting, congressional representatives are now focusing on commodities rather than wagering.
  3. FanDuel launches a new responsible gambling dashboard to help customers track their spending. By tracking and visualizing spending, customers can make better decisions about their deposits and wagers.

NJ Lawmakers Aim To Make Underage Gambling Subject to Civil Penalties

New Jersey lawmakers have proposed a new bill (NJ A5086) in the Assembly Committee, where they aim to change NJ underage gambling laws so that anyone under 21 caught gambling would be subject to a fine rather than a criminal charge.

Under the proposed bill, penalties for underage gambling would change from a disorderly persons offense to a civil offense, subject to fines:

  • First offense: $500
  • Second offense: $1,000
  • Subsequent offenses: $2,000

The proposed framework would extend to persons who help an underage person to gamble in New Jersey, such as a friend, colleague, or family member who allows an underage person to gamble using their personal and financial details.

Money that comes from these fines would go toward sustainable gambling programs to deal with:

  • Prevention
  • Education
  • Treatments for compulsive gambling disorders

It makes sense to lower the severity of underage gambling; an underage person who makes the mistake of gambling shouldn’t have to risk losing their admission to a reputable college and have their future ruined. A hefty fine is more in line with the severity of the crime. Ultimately, it’s the government and the gambling companies that together do their utmost to prevent underage gambling and actively educate about the repercussions of breaking the law.

The bill is expected to be voted on by the full Assembly in 2025. The legislative House and General Assembly must approve it. If it passes, Governor Phil Murphy will sign it into law.

Democratic Representatives Seek To Regulate Election Betting Through the Commodities Exchange Act

Prediction market platforms like Kalshi accepted millions of dollars in political wagers during the 2024 US Presidential election. Before the election, the Commodity Futures Trading Commission (CFTC) tried shutting Kalshi down, arguing that the event contracts offered by Kalshi constituted gambling. However, in a controversial ruling, a federal appeals court ruled in favor of Kalshi.

Screenshot of the bill S5100: The Ban Gambling on Elections Act
Excerpt of the proposed 70-word expansion relating to the Commodity Exchange Act of 1936.

In December, Democratic representatives from Oregon and Maryland introduced a new bill (S5100) called the Ban Gambling on Elections Act. This bill seeks to prohibit election betting, such as those offered by Kalshi and PredictIt.

The proposed bill does not involve wagering but commodity trading. It wants to add 70 words to the Commodity Exchange Act of 1936 to specify that option contracts are not allowed in any elections in the United States.

The bill's timing came at an odd time, with Congress going into the holiday season and the pending change of administration following the US election in November. Arguably, this path through the Commodity Exchange Act can be more effective than the CFTC’s attempt as they had no expertise and little ability to regulate gambling.

FanDuel Launch Responsible Gaming Tool: My Spend

FanDuel ended 2024 by launching a new responsible gambling feature called “My Spend” to help customers track their spending. FanDuel and other gambling platforms currently feature mandatory spending limits to help customers manage their spending. Some operators have gone the extra mile by building dashboards to track their activity regarding sports betting profitability. MySpend becomes unique in providing a dedicated dashboard showing how much you spend, which can help with perspectives, especially as deposits pile up over a longer time period. In turn, this can help customers optimize deposit and wagering limits.