Proxy betting, or betting on someone else's behalf, has been made illegal in New Jersey after the passage of a key pieces of legislation was signed into law by Governor Phil Murphy.
The ban was part of a suite of gambling related legislation, A5447 and S4282, which also included a ban on online sweepstakes casinos and establishes laws around event manipulation to cover sports contests, with offences for bribery or fixing games.
Proxy betting, or bowling as it is known in Australia, is now illegal with both parties, the person who commissioned the bet and the person who placed the bet, subject to criminal charges as "disorderly persons".
The bill makes it illegal to engage in proxy betting, in which a person risks property with a value of $1,000 or more, having agreed to pay 10 percent or more of the proceeds of the gambling activity to another.
The language in the legislation has been drafted in a way that there have been fears raised that someone sharing their sports or racing tips could potentially be seen as part of a conspiracy to breach that law.
Prominent sports betting figures in New Jersey have said they will leave the state as the new law makes it impossible for them to do business.
New Jersey sports betting generated US$664 million in July this year, a small decline on the same period 12 months ago.
Sportsbooks, who supported the New Jersey bill, have raised concerns about the profitability of their businesses as well as the proliferation of sweepstakes options.
That is seen a driving force behind the move to ban online sweepstakes casinos.
Australian-owned VGW confirmed it would withdraw its Chumba Casino and Luckyland Casino products from New Jersey ahead of the anticipated ban.
The Social Gaming Leadership Alliance (SGLA) led the charge against the Bill becoming law and released a statement over the weekend.
“Lawmakers in New Jersey have completely ignored their own constituents and enacted a ban that voters oppose,” SGLA Executive Director and former U.S. congressman Jeff Duncan said.
“This law is a textbook example of government overreach that strips away entertainment choices from adults who should be free to make decisions about their own entertainment.”
