Case 1:25-cv-02152-ESK-MJS Document 15 Filed 04/18/25 Page 15 of 51 PageID: 136
Sports wagering licensees and operators must comply with New Jersey’s statutory and constitutional requirements. See, e.g. , id. §§ 5:12A-10 to -11, -13(a) (listing requirements that operators must abide by to receive or maintain a li- cense); N.J. Admin Code § 13:69O-1.2 (providing general requirements for in- ternet and mobile gaming). Statutory requirements include that operators must place their servers in Atlantic City or at a New Jersey racetrack to and implement certain technical requirements and consumer protection safeguards. See N.J. Stat. Ann. §§ 5:12A-11(a); 5:12-95.22. 1 An operator also must provide documen- tation to the Division reflecting “its financial background and resources, includ- ing cash reserves, that are sufficient to demonstrate that it has the financial sta- bility, integrity, and responsibility to operate a sports pool or online sports pool.” Id. § 5:12A-13(a); see id. § 5:12-92(a)–(b). A sports-pool operator must also abide by regulations, including “maintain[ing] a cash reserve of an amount necessary to ensure the ability to cover both the outstanding unpaid winning sport pool wagers and the outstanding sport pool wagers where the outcome has not been determined.” N.J. Admin. Code § 13:69N-1.2(d). And an online sports-pool op- erator must “only accept wagers from patrons that have been affirmatively lo- cated as being physically present in the State of New Jersey at the time of their wager.” Id. § 13:69N-1.2(g). Internet or mobile gaming systems are required to employ certain security measures like a geolocation system, age restrictions, and others. See id. § 13:69O-1.2.
1 Kalshi’s sports event contracts also likely violate the Wire Act, 18 U.S.C. § 1084(b), which requires sports wagers to be placed only in States where legal.
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