New Jersey AG Drops Hammer on Net Betting Firms

18 June 2001
The fan blades of the interactive gambling industry were soiled today through an announcement from the New Jersey Justice Department. The state's attorney general, John J. Farmer, said at a press conference that civil complaints have been filed against three online casinos.

The state's Division of Gaming Enforcement and Consumer Affairs has filed civil actions against Alohacasino.com, Royalclubcasino.com and 7sultants.com for violating New Jersey law by accepting wagers from individuals located in New Jersey, advertising an illegal practice in New Jersey and accepting wagers from underage gamblers in New Jersey.

The suits allege that the defendants operate websites from which "any individual in New Jersey with a computer and Internet access can participate in a variety of online gambling activities for money, including casino-style games such as blackjack and craps, wagering on horse races and sports betting."

Farmer says the suit comes on the heels of a 15-month joint investigation between the Gaming Enforcement division and the New Jersey Division of Consumer Affairs. According to Farmer, the services have violated the New Jersey Constitution, although he did not elaborate. During the sting operation, investigators had minors (ages 15-17) log on and gamble for real money at the three sites.

The complaints, filed in the Mercer County Superior Court, Chancery Division, ask the court to permanently enjoin the defendants from advertising their sites in New Jersey and from accepting wagers from persons located in the state.

The state additionally seeks an accounting of all money won by the three sites from New Jersey residents in the past 12 months and is asking the defendants to restore "any money or property acquired by means of any alleged unlawful practice.

Further, the state is asking that the maximum civil penalty be assessed against the defendants in the amount of $7,500 per each violation of the Consumer Fraud Act.

IGN will cover more details as the story unfolds.