New Jersey lawmakers have introduced a bipartisan bill aiming to address unclaimed funds in inactive online gambling accounts. The proposed legislation seeks to transfer unused account balances to the state’s unclaimed property program after three years of inactivity, ensuring rightful owners can reclaim their funds through a transparent process.

Sponsored by Assemblymen Robert Auth (R-Bergen, Passaic) and Joe Danielsen (D-Middlesex, Somerset), and co-sponsored by Assemblymen Sean Kean and John DiMaio, the bill would amend current regulations governing dormant online gaming accounts. Under existing law, unclaimed funds are evenly divided between the casino operator and the state’s Casino Control Fund. The proposed legislation, however, would treat these funds as unclaimed property under the “Uniform Unclaimed Property Act,” according to Shore News Network.

If enacted, casinos in New Jersey would be required to notify account holders through mail, phone, and email before closing accounts and transferring funds. The state’s unclaimed property program would hold the money, allowing account holders to claim their balances at a later date.

Aiming for Accountability and Fairness

The bill is framed as a measure to ensure transparency and fairness in the handling of dormant gaming funds. By transferring control of these balances to the state, lawmakers hope to prioritize returning money to account holders and prevent gaming operators from retaining unclaimed funds. The initiative also reflects New Jersey’s broader commitment to enhancing accountability in its thriving online gaming industry.

The state’s internet gambling market has become a significant revenue generator in recent years, making it crucial to address issues like unclaimed funds. Lawmakers argue that the legislation provides a fair solution, ensuring that dormant funds are safeguarded and eventually returned to their rightful owners.

Atlantic City Casinos See Revenue Drop in Summer 2024

Meanwhile, Atlantic City’s land-based casinos faced a challenging summer, even though New Jersey’s online gambling sector continues to grow. The state’s nine casinos reported decreased revenue and profits during the third quarter, which spanned from July 1 to September 30. According to the New Jersey Division of Gaming Enforcement, cited by northjersey.com, net revenue for the period totaled $943 million, marking a 2.9% decline compared to the same time in 2023.

Gross operating profits saw an even steeper drop, falling 13.6% year-over-year to approximately $243 million. Inflation, tighter consumer budgets, and fewer events in Atlantic City contributed to the disappointing results, dampening what is typically the city’s peak season. Atlantic City’s nine casinos—Bally’s, Borgata, Caesars, Golden Nugget, Hard Rock, Harrah’s, Ocean Resort, Resorts Casino, and Tropicana—operate a total of 15,430 hotel rooms. During the summer quarter, hotel occupancy rates averaged 84.1%, a 1.5% decrease from the prior year.

James Plousis, chair of the Casino Control Commission, commented on the results, stating, “Pressure from continuing high costs can be seen in lower profits compared to the same period last year.” The challenges underscore the difficulties faced by the casino industry as it navigates economic pressures and changing consumer behavior.