GPWA Times Magazine - Issue 33 - October 2015

against affiliates that marketed to U.S. players after UIGEA, provided they com- ply with New Jersey law by Nov. 1. The New Jersey affiliate marketplace There are currently two types of licenses an affiliate can acquire if it wishes to promote regulated online gambling sites in New Jersey. The first type is Vendor Registration, which allows affiliates to earn CPA commissions and offer media buys (CPC and CPM). This type of license is free. The second type of license is the Ancillary Casino Service Industry Enterprise License, which allows affiliates to earn commis- sions through revenue sharing. This li- cense requires an upfront fee of $2,000. There are currently 17 regulated online gambling sites in New Jersey, run by six licensed land-based casino operators in Atlantic City. Online casinos in New Jersey have taken in $215.8 million in total revenue since the state launched regulated online gam- bling on Nov. 26, 2013 (as of press time, this only includes revenue through July 2015). Of that total, $169.3 million is ca- sino revenue, while $46.5 million is from poker. The largest operator (by revenue) since the launch is Borgata/Party, which has taken in $75 million over the course of 20 months. Analysis The June 4 memo was not the first time the DGE addressed affiliates that promot- ed online gambling sites not licensed by New Jersey. On April 17, 2014, the DGE sent a letter to six online poker affiliates, warning them to cease and desist from promoting such sites. The letter stated that the affiliates, “by offering links to sites which may be offering unauthor- ized online gaming, may be promoting activity that is contrary to New Jersey and federal law.” But the DGE has not addressed any po- tential consequences for affiliates who continue to promote sites not regulated by New Jersey to New Jersey players after 0 $3,000,000 $6,000,000 $9,000,000 $12,000,000 $15,000,000 Casino Poker Jul-15 Jun-15 May-15 Apr-15 Mar-15 Feb-15 Jan-15 Dec-14 Nov-14 Oct-14 Sep-14 Aug-14 Jul-14 Data provided by the New Jersey Division of Gaming Enforcement. New Jersey online gambling revenue by month 27 New Jersey affiliates can no longer have it both ways