New Jersey is a mature and well-regulated online gambling jurisdiction. In October 2024, revenue from online gambling surpassed in-person gambling revenue for the first time. The proactive regulatory framework in New Jersey is an example to other states where online gambling is now legal.
In New Jersey, operators must verify that wagers are placed within the state borders. This is a legal obligation under both state and federal law. To meet the compliance standards, New Jersey online casinos rely on geolocation systems.
Geolocation technology
A New Jersey online casino uses geolocation software to triangulate a player’s location. Initially, this technology wasn’t that accurate and sometimes blocked users when it shouldn’t have. The Division of Gaming Enforcement (DGE) in New Jersey worked together with geolocation system providers, and today, accuracy is high. The technology uses various ways to pinpoint players’ locations.
- Triangulate Wi-Fi networks near players.
- Use GPS signals on mobile devices.
- Analyze IP addresses.
- Triangulate cell towers near players.
All these methods ensure that even when players are playing close to the borders of New Jersey, they still pass geolocation checks.
If the signals conflict or look suspicious, players are blocked until the New Jersey casino can resolve any issues.
Continuous verification
With the online entertainment market growing all the time, online casinos need to keep verifying location. If a player crosses a state line while gambling on a mobile phone, the system will stop gameplay immediately. Real-time monitoring prevents issues such as a player logging in within state lines but trying to continue playing after driving to another state. Players who do this may have to log in to an approved WiFi network and verify their location before they can place bets again.
Anti-spoofing and fraud detection
A New Jersey online casino must protect players and may even issue an online safety guide for them to follow. It will do everything it can to ensure that all gambling activities are legal. At the same time, New Jersey online casinos don’t let players use VPNs or proxy servers to bypass their geolocation tests. Using anti-spoofing detection can help them to prevent this. They can check for VPN usage, proxy masking, and GPS manipulation apps.
Any abnormal IP patterns or device integrity issues will raise red flags. When New Jersey online casinos are suspicious about players tampering with location services, they must report it to the DGE.
Players using VPNs or other software to bypass laws are held liable and fined. They must pay back the winnings they have acquired illegally.
Know Your Customer (KYC) identity checks
New Jersey online casinos require customers to submit certain information before they can wager. They will cross-check this information with government or credit bureau databases. An address doesn’t determine betting eligibility, but it helps regulators connect the identity of a player with their location data. This helps to ensure that players aren’t using stolen identities to play on a site.
State-level auditing and compliance checks
The New Jersey DGE issues casino licenses and audits casino activities. It regularly tests geolocation systems. Casinos must maintain detailed logs of location verification pings. Casino operators take compliance very seriously because the DGE can shut them down if they aren’t compliant.
