Geolocation Failure Costs PokerStars NJ $25,000 in Fines

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Amaya Gaming is the company behind PokerStars, a brand that operates across the globe, including in the state of New Jersey. The company was recently hit with a $25,000 fine due to geolocation issues in New Jersey. In the state, online poker operators have to use geolocation technology to be able to determine that a participating player is in fact, located within the borders of the state. The geolocation technology used by PokerStars New Jersey failed recently which cost the company a fine by the New Jersey Division of Gaming Enforcement.

A decision from January 20th was recently published by the Division of Gaming Enforcement which details how a flaw in the software allowed individuals who were located out of state to take part in online poker gaming at the PokerStarsNJ website. This is a violation of the intrastate gambling laws of the DGE.

With their investigation, the Division of Gaming Enforcement was able to determine that a limited number of individuals were able to wager at the site while not being located within the borders of the state. The players only had access to PokerStarsNJ for a limited time until the geolocation check detected that they were located out of state and they were then blocked from gaming.

Since this incident occurred, PokerStars has reportedly launched an update to the software to ensure the mistake does not happen again. Because of the incident, the DGE decided that they had found legal and factual support to impose the fine of $25,000 on Amaya Gaming.

Online gaming operators have to follow all regulations set forth by the DGE to remain in operation in the state without penalty. The last time an occurrence such as this took place in the state was in June of 2016 when GAN, a gaming technology provider, inadvertently allowed six players to gamble while outside the state via an Android device.

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