New Jersey Imposes Data-Driven Responsible Gaming Rules on Online Operators and Seeks Supreme Court Review of Prediction Market Status

New Jersey Attorney General Jennifer Davenport announced data-driven responsible-gaming requirements for online operators alongside efforts to subject prediction markets to state oversight. The regulations mandate customer monitoring for problem-gaming criteria, resource provision, and intervention where necessary. Davenport highlighted the explosion in retail and online casino games plus sports betting, noting ads are everywhere.

Davenport said the rules create clear consistent criteria so every operator follows the same standards. She targeted platforms like Kalshi that operate outside state gaming laws and consumer protections.

Responsible Gaming Mandates and Intervention Process

The requirements apply only to online operators for now. Each must appoint a responsible-gaming lead and employ mandatory patron play thresholds plus behavioral triggers. When criteria are met, operators conduct due-diligence reviews of overall gaming activity and behavioral indicators.

Jamie McKelvey, responsible-gaming coordinator with the Division of Gaming Enforcement, said these criteria identify patterns of behavior that may indicate gambling-related harm. A trigger requires evaluation before any determination of risk. Confirmed at-risk patrons enter a three-phase intervention process. Phase three requires live communication between the lead and the patron. Accounts may be closed if risk persists.

The state also released RecoverMe, a free cognitive-behavioral therapy app using validated assessments, evidence-based sessions, habit tracking, and New Jersey-specific crisis services.

Supreme Court Petition Targets Kalshi and Prediction Markets

Davenport said it is problematic that Kalshi claims to offer legal sports betting in all 50 states but refuses to follow state gaming laws. Last month New Jersey asked the Supreme Court to review a 2-1 U.S. Third Circuit Court of Appeals decision holding that the Commodity Exchange Act bars states from regulating sports event contracts on platforms like Kalshi and Polymarket. That ruling conflicts with a Ninth Circuit decision allowing Nevada to prohibit such contracts, citing the Dodd-Frank Act of 2010.

Davenport noted New Jersey was joined by 39 states, the District of Columbia, 146 tribal nations and tribal organizations, and the NFL. Mary Jo Flaherty, interim director of the Division of Gaming Enforcement, said she was hopeful the Supreme Court would take the case and issue a favorable ruling on the merits. As reported by CDC Gaming, the petition argues the Third Circuit outcome would kill state sports betting regulation and expose operators to federal Wire Act violations.

A Supreme Court decision accepting review could resolve the current circuit split and clarify whether states retain authority over products indistinguishable from sports wagering. Operators offering both traditional sportsbooks and prediction market access should track the case, as the result will directly affect licensing obligations and compliance burdens across jurisdictions.

Reporting: CDC Gaming

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