Regulated online gambling is roaring towards its launch date in New Jersey but there are still plenty of unanswered questions about what exactly it’s going to look like.
One of the biggest questions that’s been left hanging is exactly what role affiliates will play in what the Director of the New Jersey Division of Gaming Enforcement, David Rebuck calls the, “new world order,” in the gambling world, until now.
Rebuck recently sat down for an extremely informative interview with Global Gaming Business Publisher, Roger Gros where he revealed a bit more about affiliates and how they’ll fit into the Garden State regulatory structure.
One theme that came up over and over in Rebucks’ comments about Internet gambling was adaptability. He made it clear that the gaming business is in constant motion and the regulations that go into the book on day one might not last long if they’re not working.
Bearing that in mind, here are some of Redbucks insights on affiliates and more.
The Role of Affiliates
Rebuck, who describes himself as, “…an attorney, not a techology guy,” is quick to point out that companies in the casino service industry can expect to be held to the same standards as the casinos themselves. He did, however, make a distinction between several types of affiliates including:
Pass Through Affiliates
Pass Through Affiliates include any company that advertises online gaming. The example Rebuck uses is the New Jersey Star-Ledger online edition. Companies that are merely a conduit for gaming but not involved in revenue sharing won’t need a license; though they may need to register with the State at some point.
Revenue Share Affiliates
Rebuck says that revenue sharing entities, which would presumably include most CAP readers, would be held to a standard that’s similar to how junket operators are treated. That said, he also hints at a revenue threshold of some kind that would expose the super-affiliates to a higher level of licensing and regulation.
Branding to Skins
Branding to Skins is the one area of the online gambling world that Rebuck described as, “Well beyond the level of marketing we’re used to.” He’s currently working with consultants to get a feel for how licensed gaming products should be regulated.
The American Market
Rebuck is enthusiastic about the prospects of regulated online gambling and is well prepared for the launch of regulated igaming later this year.
His department has been working on the draft regulations for months and are aiming for, “best practices in place on day one.” (Though they’re also ready to adapt to whatever circumstances come up.)
Interstate Gambling
Rebuck is especially jazzed about the prospect of interstate gambling compacts, something the Garden State’s been banking on since the beginning.
One reason he’s so positive is that, in his view, the moral objections to gambling used in the 1970’s just aren’t a factor anymore. After all 48 US States offer some form of legal gambling.
Finally
New Jersey online gambling promises to be a completely different animal from Nevada online gambling, so x-factors abound.
Rebuck rightly observes that Jersey’s nine million residents and position in the densely packed Eastern Seaboard present a number of challenges the Silver State just won’t be dealing with.
He also predicts an NJ igaming market that looks to be packed with well-prepared operators who are ready to battle in an extremely competitive, and lucrative, market.
Do you think New Jersey is taking the right approach to regulating online gambling and casino affiliates? Share your thoughts in the comments section below.