New Jersey spells out stance on grey market operators
 State regulator will accept grey but not black when it comes to licensing
The New Jersey Division of Gaming Enforcement (DGE) has clarified its stance on issuing licenses for international gaming companies operating in grey markets around the world.
DGE director David Rebuck yesterday issued a âDirectorâs Advisory Bulletinâ in which he defined black and grey markets and affirmed that New Jersey would accept those operating in grey but not black.
According to Rebuck, a black market is one âwhere it is clear that internet gaming is prohibited and the government has taken action to stop online gaming activity.â
He warned that black market operators would not be able to establish the âgood character, honesty and integrityâ required for licensure in New Jersey.
Rebuck also asserted that operators doing business in grey markets â defined as âjurisdictions where the legality of internet gaming operations is an open questionâ â would be suitable for licensure in New Jersey.
Backing up his rationale, Rebuck pointed to ongoing debates in Europe, where EU law offers protection to firms operating in places like Germany, where online gambling is not supported by the government.
â[We] will not adopt a standard that could erroneously substitute its own judgment for that of another sovereign jurisdictionâs executive, legislative or judicial authority,â wrote Rebuck.
The issue was brought to the fore by the recent licensing of PokerStars in New Jersey, despite its history and present activity in grey markets around the world.
Specifically, opponents of PokerStars campaigned against its licensing based on the firmâs decision to offer poker in the US after UIGEA was signed into law in 2006.