New Jersey regulator warns online operators about improper payout delays

[The Buzz]

In a letter dated 13 January, New Jersey Division of Gaming Enforcement Director David Rebuck said that his office has received numerous complaints about withdrawal times from online operators, prompting an investigation into operators’ payment processes as well as a commitment to player protection and responsible gambling.

The letter read:

The Division of Gaming Enforcement ("Division") has received patron complaints regarding the processing time for withdrawals from online gaming accounts. Specifically, patrons have complained that after requesting a withdrawal, it can take up to two weeks for the funds to be available to them. While some of this time period can be attributed to the need to investigate possible fraud, identity theft or money laundering, the volume of complaints has led the Division to undertake a review of existing regulations and industry practices regarding withdrawals to ensure the Division's concerns regarding player protection and responsible gaming are being properly balanced against a patron’s right to access their funds.

This review was undertaken to determine if operators current withdrawal policies are complying with the intent of existing regulations. This review revealed that in the period between a withdrawal request and the actual release of funds to the customer, patrons reported contact from providers encouraging or enticing them to reverse the withdrawal request and wager the funds. It has been reported by some patrons that they were even offered bonus money to reverse a pending withdrawal request. The Division has concluded that the existing rules of the Division prohibit the practice of soliciting or incentivizing withdrawal requests to be rescinded or cancelled by the patron.

Rebuck goes on to note that these unnamed operators were of offering "bonus money to reverse a pending withdrawal request."

"The Division has concluded that the existing rules of the Division prohibit the practice of soliciting or incentivizing withdrawal requests to be rescinded or cancelled by the patron. Numerous regulations address the concept of withdrawals from a patron’s account.”

“While no specific time frame for processing a withdrawal is mandated, it is clear that the rules do not countenance unnecessary delay.

“The Division has interpreted its regulations to authorize the re-deposit of funds earmarked for a ‘requested, but not yet completed,’ withdrawal request — but only if the decision to reverse the withdrawal is made independently by the patron. The Division shall not permit ‘funds in the process of withdrawal’ to be deposited to an iGaming account if such deposit was solicited or incentivized by an operator.

“Accordingly, while no specific time frame is referenced, the rules regarding withdrawals from an online account are intended to require patrons to receive their withdrawn funds without any delay longer than needed to perform an anti-fraud or anti-money laundering check.”

Read the entire letter here: https://www.nj.gov/oag/ge/docs/Bulle...ion2021.01.pdf

[Cash Bonus]

This really is nothing new under the sun, obviously. It's been happening for a very long time since the igaming industry was formed and it's such a pain in the neck! There have always been many complaints from both players and affiliates regarding late payments. We're always chasing up our unpaid commissions and it never ends.

[PROFRBcom]

They should allow for crypto payments, problem solved and better margins!