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PokerStars Slapped With Record Fine in New Jersey

PokerStars recently set a record for legalized online gambling in New Jersey, but it’s not the type of record they want. According to an article from Press of Atlantic City, PokerStars has been hit with the largest ever sports betting fine after taking prohibited bets on NCAA games.

PokerStars was fined a record $10,000 for the violations. While this may seem like a small amount compared to the money accepted by online sportsbooks and online casinos in New Jersey, it can actually be looked at as good news for regulated gambling markets.

PokerStars Took Over 200 Bets on Prohibited Teams

In New Jersey, bets on college athletics are prohibited for in-state teams. Over the course of two months, PokerStars accepted bets on multiple prohibited games. The first was on November 19 when PokerStars accepted 216 bets on a Rutger’s men’s basketball game totaling $2756.89. On December 31, PokerStars also accepted bets on Monmouth University.

The subsidiary company fined for the violations was TSG Interactive US Services Limited. On April 12, the NJ Division of Gaming Enforcement fine the company a record $10,000 for the two violations. Note, this was not the first time that penalties have been issued against an NJ sportsbook.

In the past, other violators either paid a fine of $2,000 or forfeited proceed of the bet. So why the high fine (comparably) for PokerStars? While it was not stated, we estimate that it because that PokerStars was a controversial operator before entering the New Jersey market. It’s likely they were being made an example of to prove that the DGE is not afraid to punish PokerStars.

The Stars Group spoke about the fine on Monday, stating, “We generally don’t comment on regulatory matters like these, but we had a manual gating error from our international games into New Jersey. We cooperated with the DGE as we always do, have learnt from the problem, and are confident it won’t reoccur. We’re glad to have had a successful NCAA basketball season with our players enjoying our Home of the Underdog campaigns that saw us put out best odds in the market for all underdogs.”

PokerStars Fine is Good for Industry

While this may seem a bit counterintuitive, this fine against PokerStars may be one of the best things to happen to the New Jersey iGaming market. Firstly, it shows that regulators are keeping close tabs on all things online gambling. While a couple of hundred bets may not be that big of a deal, it still shows that sites are being monitored as they should to prevent unauthorized gambling.

Next, I like the fact that PokerStars received a stiffer penalty than other providers. Since some feel that PokerStars should not have even been allowed to participate in NJ online gambling, this shows that regulators are not playing favorites and willing to punish those that break the rules.

You can’t look at New Jersey online gambling and claim that they are not being monitored properly. If the DGE is willing to come down harsh on what is likely $3,000 worth of bets, then online gamblers as a whole can rest assured that their gaming is being handled fairly and they don’t have to worry about PokerStars (or other NJ sites) becoming the next Full Tilt Poker.

If anything, this fine goes to prove that online gambling regulation in the United States works and that it should be pursued by other states. Pennsylvania will launch games later this year and West Virginia will soon join the regulated market. It’s now time for Michigan and other US states to step up and move forward with online gambling regulation.

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