New Jersey Assembly Bill to Restrict Bet Promos Advances

Some big changes may be coming for New Jersey online sportsbooks.

The state Assembly’s Tourism, Gaming, and the Arts Committee unanimously passed AB 4003 this week, which is intended to restrict sportsbook promos. If passed, operators would no longer be allowed to send bet promos and bonuses to players who are actively using responsible gaming tools. Sportsbooks would be fined $500+ for each violation of the proposed law.

This bill prohibits sports wagering licensees, or their contracted operators, from offering any promotional credits, incentives, bonuses, complimentaries, or similar benefits designed to induce persons to wager, to any person who is currently utilizing any responsible gaming programs,” AB 4003 reads. “This would include any responsible gaming programs offered by the sports wagering entity or by the State.

Lawmakers across the US have been looking to crack down on sportsbook advertising, but most of those efforts have failed. The industry has spent massive sums to fight those proposals, warning about the impact they’d have on the revenue for both sportsbooks and states. 

New Jersey’s Senate is considering a companion bill, SB 3420, which is awaiting its first committee vote.

How Effective Would a Ban Be?

The change proposed by AB 4003 is reasonable, but there is reason to question its effectiveness.

On one hand, the lack of emails, texts, and push notifications will remove the constant temptation to place wagers. These promos and bonuses are designed to get customers to place wagers, even if they weren’t planning to. By removing that temptation, the state hopes bettors using RG programs can establish better responsible gambling habits over time, leading to long-term protection against addiction.

On the other hand, sportsbooks' promos and bonuses are all around the US. Most games now feature in-game and TV advertising for sportsbooks, which often include a bonus or promotion. That means users enrolled in RG programs will still be tempted to place wagers, limiting the effectiveness of AB 4003.

It is also important to consider that many bettors using these RG programs already have restrictions in place to protect them. By limiting targeted ads for bonuses and promos, those bettors could end up spending more. That will make RG programs an even harder sell than they already are, resulting in fewer bettors reaching out for help.