NJ Regulator Fines Caesars Over Self-Exclusion Violations

Caesars Sportsbook has learned an expensive lesson in the Garden State.

The New Jersey Division of Gaming Enforcement has fined the operator for violating problem gambling laws, including those involving self-exclusion lists and advertising. It ordered Caesars to pay $296,715 for the violations, and Caesars has agreed to pay.

The fine is small relative to the operator's overall revenue, but sends a clear message that the state won’t overlook violations involving problem gambling.

Caesars Failed to Uphold Self-Exclusion List

While the New Jersey regulator hasn’t shared all the details of the violations, the official order gave us insight into what they involve. 

One of those is the state’s law requiring sportsbook operators to strictly adhere to self-exclusion lists. That means it cannot accept wagers from bettors on the list, which is meant to keep them off sportsbooks for up to five years. The order suggests that Caesars failed to do so with some New Jersey bettors.

Self-exclusion lists remain an important tool in the fight against problem gambling. They help struggling bettors to stop being able to place wagers, forcing them to cool down and address the addiction that led them to seek help.

Caesars Online Sportsbook Struggles in NJ

While New Jersey is home to a large sports betting market, Caesars has more invested in the state than most operators. It currently runs an online sportsbook and three casinos through a partnership with Caesars Interactive Entertainment New Jersey, LLC.

While the Las Vegas-based operator has seen its physical properties succeed, it’s not had the same luck with its mobile sportsbook. As of July, Caesars Sportsbook has seen $15.3 million in gross revenue for the year. That kept them narrowly ahead of Hard Rock, but it was almost $34 million less than rival BetMGM.

Caesars has seen similar results in other US markets as it continues to lose ground to newer operators like Fanatics. 

Strong Message, Or a Big Risk?

The NJ Division of Gaming Enforcement is hoping its fine against Caesars will send a clear message to the regulated sports betting industry. Like other regulators, it believes problem gambling protocols are critical, and enforcing them should be a top priority.

However, the move doesn’t come without risk.

Caesars has held off on pursuing a prediction market platform, even as FanDuel, Fanatics, and DraftKings have launched their own. One of the biggest appeals for operators is the industry’s status as commodity trading instead of gambling. That allows them to avoid state regulations and taxes, along with the fines that come from violating them.

Caesars’ Las Vegas ties mean it is unlikely to shift toward predictions, but several other operators are pushing to do so. By assessing a large fine for what some believe were small violations, it could further motivate sportsbook operators to invest more in sports markets.