New Jersey lawmakers propose bill to change rules on dormant igaming funds
Bipartisan group of assemblymen have pitched legislation that would allow players in the Garden State to reclaim funds from inactive accounts via a state program
New Jersey lawmakers from both political parties have proposed a new bill regarding what to do with funds left dormant in igaming accounts.
The new legislation – Senate Bill 152 – is being led by assemblymen Republican Robert Auth and Democrat Joe Danielsen, with the backing of fellow assemblymen Republicans Sean Kean and John DiMaio, as they look to ensure improved transparency when it comes to the handling of unclaimed funds from inactive accounts.
Under the current system, unclaimed funds left dormant in igaming accounts for one year are split equally between the relevant casino licensee and New Jersey’s Casino Control Fund.
However, under SB 152, those funds would be filed as unclaimed property under the “Uniform Unclaimed Property Act 1989.”
Were the legislation to pass, the sort of funds in question would be transferred to the Garden State’s unclaimed property program, but only after three years of inactivity.
Account holders would still be able to reclaim the funds after this period, should they wish, through the state’s program.
SB 152 also proposes that all operators contact account holders via phone, mail, and email before any dormant accounts are officially closed, to provide another opportunity to reclaim the funds.
If implemented, this program would differ to equivalent systems in other US states, such as in Michigan, where any account left inactive for more than one year is deemed dormant and any remaining funds are subject to forfeiture.
In Pennsylvania, igaming accounts must be inactive for two years before they are considered dormant, with operators obliged to notify account holders after the first year.
Any funds that remain in the account 60 days after a player has been notified are regarded as “abandoned”, with the funds then transferred to Pennsylvania’s Bureau of Abandoned and Unclaimed Property.
New Jersey’s SB 152 proposal is significantly more lenient, with a three-year period of inactivity before the account is classified as dormant, while it also offers players a higher chance of reclaiming the funds as opposed to a forfeiture system like the one in place in Michigan.
The bill is part of an effort by New Jersey lawmakers to promote greater transparency between operators and consumers.
Igaming remains on the rise in New Jersey, as per the state’s October revenue report that highlighted how igaming-generated revenue had surpassed that of land-based retail outfits for the very first time in its history.
At the end of October, igaming revenue in the Garden State came in at $213.6m, marking a 28.1% year-on-year increase. This sets a new record for the vertical as well as beating land-based revenue’s total of $208.7m.