New Jersey Moves to Decriminalize Underage Gambling; Levy Fines Instead

Can funding prevention be the solution to stopping gambling addictions? New Jersey is considering making that bet as it moves to decriminalize underage gambling.

The Garden State has advanced Senate Bill 597 through committee, aimed at ending criminal penalties for underage gambling. Instead, the state would introduce fines, with the money going directly to programs aimed at preventing compulsive gambling.

If the legislation passes, a first-time offense would be fined a maximum of $500. Fines would increase to $1,000 for a second offense and $2,000 for subsequent offenses. Fines could be levied against three different parties: the underage bettor themselves, their primary caregiver and the casino or sportsbook provider that allowed it to happen, plus any employees responsible.

Sen. James Beach (D-Camden), one of the sponsors of SB 597, has said that he doesn’t want to see young people saddled with a criminal conviction from underage gambling. At the same time, he wants to continue to fight back against underage and problem gambling.

“Our efforts are better spent focusing on behavioral changes that may prevent future addiction,” Beach said. “By replacing criminal penalties with civil fines and directing that revenue towards gambling addiction prevention, education, and treatment programs, we will help young people avoid gambling-related problems in the future.”

How Likely Is the Bill on Underage Gambling to Pass?

It seems like it has a good chance. SB 597 has bipartisan sponsorship, and Gov. Mikie Sherrill’s administration has taken steps to mandate responsible gambling. On Oct. 21, New Jersey became the first state in the nation to mandate gambling safeguards for online sportsbooks and casinos.

Attorney general Jennifer Davenport announced the new rules, which require providers to monitor problem gamblers. Most sportsbooks and casino providers had staff members dedicated to combating problem gambling and underage gambling already, but the Garden State’s new standards now make it mandatory.

Given that political climate, it seems the bill won’t encounter much resistance, if any. Democrats hold a majority in both chambers of the New Jersey legislature, and Republicans seem to be on board in the unlikely event of a veto.

Sen. Vince Polistina (R-Atlantic City), whose district includes the casino resorts of Atlantic City, has also sponsored SB 597. He said the new standards keep sensible penalties in place for underage gambling.

“Underage gambling should never be encouraged, and casinos have a responsibility to follow the law,” Polistina said. “But a criminal offense is an unnecessarily harsh consequence for a kid who makes a mistake.”

Why Has Underage Gambling Become an Issue in New Jersey?

As gambling has become available on people’s phones, kids have found much easier access to it. Before 2018, New Jersey only allowed legal gambling in Atlantic City. But the Garden State now permits online sports betting and iGaming throughout the state, and many parents make small bets with their kids as they watch sporting events together.

One problem comes when kids enter their parent’s passwords, gaining access to accounts. The new legislation’s attempt to focus on education seems to recognize that reality. Given that enforcement of those situations is difficult to impossible, the next best thing is educating young people to try to prevent them from accessing accounts without a parent present.

When Could the Bill Become Law?

New Jersey’s legislative session continues through mid-December. The state legislature isn’t likely to discuss much until after the midterm elections, which happen on Nov. 3. Most likely, SB 597 will be debated in November or December, with the bill likely to reach Sherrill early in the new year.

New Jersey’s new legislators will be sworn in on Jan. 12. If the bill hasn’t reached Sherrill by the end of December, the new group of legislators would need to decide whether or not to take it up.