New Jersey regulator bans operators from encouraging reverse withdrawals
Department of Gaming Enforcement reviews withdrawal process in the Garden State after bettors complain of lengthy wait times
US operators have been barred from promoting reverse withdrawals after New Jersey’s Department of Gaming Enforcement (DGE) received complaints from customers about lengthy withdrawal processing times.
Operators were found to have encouraged users to reverse their withdrawals and wager the funds instead, with some users offered bonuses as an incentive to cancel their withdrawal requests.
In a letter to operators dated Wednesday January 13, the DGE said the process sought to review existing regulations and 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.”
As a result, the regulator has enforced a new rule to prohibit firms from encouraging reverse withdrawals.
The matter has previously been considered a potential trigger for problem gambling by the UK Gambling Commission (UKGC), which moved to cancel reverse withdrawals in May 2020 as part of new Covid-19 guidance.
At the time, Ian Sims, founder of affiliate compliance firm Rightlander, said: “This is arguably the single best thing I’ve seen since regulations began. It’s been a huge point of contention for years.
“And not only will that help build player trust, it will also kill off some of the threat from unlicensed operators,” he added.
The Garden State reached a record $996.3m (£730m) in sports betting handle in December, up 7% on the previous all-time high of $931m achieved in November.