Thursday, November 28, 2024

New Jersey considering changes to dormant account rules

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New Jersey politicians are again reportedly considering changes to the state’s existing rules on how the balances on dormant accounts will be handled, lengthening the time period account balances could be recovered from one to three years. 

The current rule dictates that abandoned funds be split between the online operator and the New Jersey Casino Control Fund. Two proposed bills – New Jersey’s Senate Bill 152 (S152) and Assembly Bill 397 (A397) – would see the entirety of the dormant account funds be transferred into New Jersey’s general unclaimed property fund, which offers a three-year window for recovery.

The bills, if passed, would bar the operator from claiming half of the abandoned funds while also imposing a multi-step process for operators to attempt to notify accountholders of the forgotten balances.

Current versions of bills languishing in committee

The issue of unclaimed balances within online gambling accounts has been considered before. Both S152 and A397 were introduced in January of 2024, submitted to respective Senate and Assembly committees, where neither bill has been called for a vote. Both bills are also rollovers of nearly identical measures that were introduced in 2022.

Now, however, new interest in the topic has been reported, with the increased growth of the online portion of New Jersey’s gambling market offering at least some additional urgency to the matter. The changes are also being pitched as increasing operators’ overall responsibility in making the maximum effort to reunite lost funds with their rightful owners.

No votes have been scheduled for either S152 or A397. The likeliest scenario is that if sufficient support for the measures emerges, hearings and potential votes would be held beginning in 2025.

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