GiG receives $25,000 New Jersey fine
Operator says a technically savvy end user found a technical vulnerability in its geoblocking system which has since been closed
Gaming Innovation Group (GiG) has been fined $25,000 by the New Jersey Department of Gaming Enforcement (DGE) for allowing betting by an out-of-state punter.
GiG received approval to operate in the New Jersey market in June 2018, launching online casino operations in partnership with Hard Rock International in August 2018.
The complaint was registered in December 2018, a month prior to the launch of GiG’s land-based and online sports book with local operator Hard Rock Atlantic City.
According to reports, GiG have agreed to pay the fine, acknowledging its violation of state gambling laws.
The firm said in a statement provided to EGR: “This one-off single incidence of out-of-state gambling was due to a technical vulnerability which was quickly discovered and reported (by GIG’s B2B client) to the regulator in New Jersey in the first week the Company went live in New Jersey in the beginning of July 2018. GeoComply was at all times integrated.
“An end user from outside the State of New Jersey with technical knowledge managed to access the front end debugger to change the location and pretend to be from New Jersey. The vulnerability was discovered after this end user had exploited it as part of vulnerability scans which GiG was carrying out.
“An immediate fix was implemented and the matter was very promptly resolved with a permanent secure solution which was approved by the Division of Gaming Enforcement. GiG’s IT Security maintains protective, detective and reactive controls to mitigate risk which are fully integrated within its processes and operations to ensure continuity and security with all regulations are maintained at all times.”
Under New Jersey gaming laws, operators are required to enforce geoblocking services to stop individuals from outside the state from accessing in state online gambling and sports betting sites.
In March, DGE officials ordered Californian Vinh Dao to repay over $90,000 in winnings following out-of-state betting on New Jersey poker gambling sites reportedly belonging to Borgata and Caesars Interactive.