New Jersey To Prohibit Player-to-Player Chip Transfers Online

In the maturing world of online poker and gambling, it came as a surprise to players when they heard New Jersey will not allow patron to patron money transfers. Nevada and Delaware are the only two states with in-state Web gambling, though the latter does allow P2P transfers. Nevada, however, came to the conclusion that fund transferring has potential for exploitation, collusion, money laundering, and shadow banking.

In fact, a P2P fund transfer is an essential component of gambling as a whole. Staking a player, for example, is typical for pros and between friends. Not having P2P transfers may encourage players to find other avenues for money transfer, an idea against the point of legalizing statewide gambling in New Jersey. In late November, several Atlantic City casinos are launching a five-day trial period of online gambling. Most are partnered with industry leaders and are allowing New Jersey players a chance to play domestically.

This new climate of legal online gambling in the U.S. is a positive move for casinos and gamblers. Doing everything by the books and within regulation is a necessity for this New Jersey trial period to turn into a permanent system for future online gambling across the entire country. Once it takes off, states will realize the tax revenue increase from additional gamblers. Also, in-state players no longer have to drive to other casinos (possibly out of state) and will keep their chips local.

Players distressed about the P2P issue should not worry. New Jersey’s launch is in its infancy, and the state is doing everything it can to ensure the system goes off without a hitch. In time, the state will likely realize the benefits of P2P transfers and will look into implementing the systems.

Online poker giant, the Rational Group, proposed an amendment to the current P2P regulations. The reasoning behind New Jersey lawmakers’ decisions is that players will use online gambling sites to circumvent banks and other financial institutions for fund transferring. People with illicit intentions are likely to figure out other ways to do this within or outside of the law, and it is better to structure a formal process for fund transferring and deal with the concern once online gambling goes live in New Jersey.