Here is the weekly recap of the top legal news in the Internet gaming world for the week of Sept. 15-19:

  • Study: U.S. Internet Gambling could be generating $5.2 billion by 2020 and be in 20 states 
  • Charitable Text-To-Enter Raffles OK’ed for Partnerships with New Jersey Internet Gaming Providers

Study: U.S. Internet Gambling could be generating $5.2 billion by 2020 and be in 20 states

A Morgan Stanley research note released this week pegged the U.S. Internet gaming market at $1.3 billion by 2017 and $5.2 billion by 2020.  These estimates are a significant downgrade from previously released numbers from Morgan Stanley.

While the estimates have been reduced, Morgan Stanley remains “bullish on the long-term opportunity for US online gaming.”  The note also declared that Morgan Stanley assumes “that CA is the only state to pass legislation in ’15 (for a ’16 opening).  That being said, Morgan Stanly suggests after 2015, the number of states jumping into the online gaming space will increase to 7 in in 2017 and 20 in 2020.

Charitable Text-To-Enter Raffles OK’ed for Partnerships with New Jersey Internet Gaming Providers

The New Jersey Division of Gaming Enforcement released a temporary regulation that would permit charitable organizations to partner with an internet gaming permit holder (i.e. a casino license offering internet gaming) to offer “text-to-enter” charity contest whereby individuals can text a number for entry into a raffle or other contest for a chance to win a prize proceeds going to charity.

The regulation requires entrants to be physically present in the state and be over 21 at the time of entry.  Additionally, the prizes may not exceed $10,000 and the internet gaming permit holder cannot charge an administrative fee valued over 5% of the offered prize.

This new temporary regulation raises implementation questions as to the applicability of the existing Legalized Games of Chance Control Commission authority delegated under New Jersey’s Raffle Licensing Laws.

The temporary regulation is scheduled to go into effect October 13, 2014.